What is the role of financial intermediaries in an economy?
What is special about banks? How do lenders’ and borrowers’ requirements differ?
How can financial intermediaries bridge the gap between them?
Explain how banks can lower transaction costs.
Explain the relevance of information asymmetries in the intermediation process.
How do adverse selection and moral hazard affect the bank lending function? How can banks minimise such problems?
How are banks affected by agency problems?
Describe the main theories put forward to explain the existence of financial intermediaries.
Explain the concept of delegated monitoring.
What are the costs and benefits of financial intermediation?
What is a deposit-taking institution?
Why is the ability to collect retail deposits such an important feature?
How do banks create money? Explain the theory of the credit multiplier.
Define universal banking. Discuss the advantages and disadvantages of a universal banking system.
Has the 2007–2009 financial crisis exposed the weaknesses of the universal bank business model?
Discuss the main services offered by banks.
Define a payment system. Discuss the main contemporary changes in payment systems.
Describe the main characteristics of different types of plastic cards.
P2P lending organisations clearly cut out the ‘middle man’ by effectively disintermediating the transactions.
What are the benefits and risks of the P2P lending process?
In what way(s) is it different from traditional banking?
Could this system potentially produce a better outcome for all parties involved?
What is e-banking? How has the use of technology changed the retail banking industry?
What is meant by ethical and sustainable banking?
In what ways does traditional banking differ from modern banking?
What is bancassurance?
Explain the main characteristics of the different types of banks that offer personal (retail) banking services.
What are the primary features of private banking?
What are the main features of corporate banking?
What are venture capitalists? To what extent are they similar to private equity finance?
What are the typical services offered by banks to the large (multinational) corporate sector? Distinguish between short- and long-term financing.
What services do investment banks typically offer to customers?
What is proprietary trading?
What are the pros and cons of the conversion of the US investment firms into BHCs?
What are the benefits of universal banking compared with specialist banking?
What distinguishes Islamic banking from Western banking?
In what ways does traditional foreign banking differ from Eurocurrency banking?
Why do banks go overseas? What are the main theories on the rationale for international banking?
Explain the main strategic reasons why banks may wish to establish foreign operations.
What do correspondent banking relationships involve?
Explain why banks engage in syndicated lending.
Discuss the different stages of a syndicated lending process.
Outline the main type of bonds that an international banking institution can issue.
What is a Euroequity issue?
In what way(s) can the banking sector provide trade finance that helps facilitate the import and export of goods for firms involved in international trading?