Unit information: Banking Regulation and Financial Stability in 2026/27

Unit name	Banking Regulation and Financial Stability
Unit code	ACFIM0044
Credit points	20
Level of study	M/7
Teaching block(s)	Teaching Block 2 (weeks 13 - 24)
Unit director	Dr. Park
Open unit status	Not open
Units you must take before you take this one (pre-requisite units)	None
Units you must take alongside this one (co-requisite units)	None
Units you may not take alongside this one	None
School/department	School of Accounting and Finance - Business School
Faculty	Faculty of Social Sciences and Law

Unit Information

Why is this unit important?

This unit provides an introduction of banking crises and how central banks address financial stability considerations. Also, the unit discusses the role of monetary policy for bank risk taking, and how financial stability affects the real economy. In detail, the following themes are covered: measurement of systemic risk; contagion in interbank markets; macroprudential regulation; bank bailouts; and stress testing financial systems. The lectures and tutorial discussions are based on historical and contemporary issues in finance. Ultimately, students of this module will obtain a comprehensive overview of the role of regulation and supervision in banking.

How does this unit fit into your programme of study?

This unit complements other units in the MSc Banking and MSc Financial Technology programmes with a focus on financial stability. This unit focuses on understanding policy papers and regulatory implications of academic papers from macroeconomic perspectives. The discussion will involve understanding direct impact of regulations on financial institutions to indirect impact on real economy. Students of this module will obtain a comprehensive overview of the role of regulation and supervision in banking.

Your learning on this unit

Overview of content:

Crises and financial stability in central banks

Monetary Policy and Bank Risk Taking

Microprudential regulation

Macroprudential regulation

Contagion and Systemic Risk

Too big to fail (systemically important institutions)

Bailouts

Subprime crisis and global financial turmoil

How will students, personally, be different as a result of the unit

Students of this module will obtain a comprehensive overview of the role of regulation and supervision in banking. Additionally, students will be able to analyse and interpret central bank statements concerning financial stability and appropriately use microeconometric techniques to answer research questions in banking;

Learning Outcomes:

1. Explain key topics in the empirical banking literature focused on financial regulation and stability.
2. Explain the importance of financial stability considerations both from a micro-, as well as from a macroeconomic perspective.
3. Comprehend and analyse sources of instabilities in the financial system and evaluate their effect on other agents in the financial system.
4. Discuss the importance of financial stability considerations in central banks.
5. Critically analyse the extent to which regulation and supervision affect commercial banks’ conduct, and, ultimately, the real economy.

How you will learn

How you will learn

Teaching includes a combination of lectures, smaller group workshops, and clinics. Lectures are intended to be interactive with students being expected to actively participate in the discussion of topics covered in the course. During workshops students will be presented with an opportunity to discuss real life examples related to topics discussed during lectures. Students will also complete their multiple choice tests as well as work in groups to complete case studies.

How you will be assessed

Tasks which help you learn and prepare you for summative tasks (formative):

Students will be provided with formative assessment during workshops. For example, students will be required to work in groups to complete a case study which they will present to their colleagues and will receive verbal feedback from tutors.

In addition, there will be one mock test similar to the using multiple choice tests that are part of the summative assessment to enable students to practice this form of assessment.

Tasks which count towards your unit mark (summative):

(1) 30 % Group assignment consisting of an empirical research project (max 2000 words). ILO2, ILO3 and ILO5

• Students will be required to form teams at the beginning of term and each group is required to complete a task that is both empirical and analytical. The assignment theme will be based on one of the themes covered in the module (e.g., monetary policy and bank risk taking). This assignment places great emphasis on the conceptual understanding between regulation and bank conduct. Students will be given some data with the aim to interpret the data in light of the literature discussed in class. The assignment task will be put on Blackboard. In particular, this assessment component is expected to:
  • Improve students’ ability to collaborate with their peers to complete a research project.
  • Allow students to implement their knowledge of microeconometric techniques for research purposes.
  • Develop/advance financial data management skills using appropriate statistical software packages.
  • Improve report drafting skills required to present results and findings.
• For the group assignment students will be able to select their group members. Appropriate and detailed protocols will be put in place for selecting groups, efficient group work, time management in a group, allocation of responsibilities, and ensuring equality of contribution and about support for group work. There will also be rules for disputes among group work. All students in a given group receive the same mark.

(2) 60% Individual assignment (max 1,500 words). ILO1, ILO2, ILO4, ILO5

This assignment consists of a task for the student to demonstrate the ability to furnish a report on bank bailouts, weighing the pros and cons of such government intervention in the financial system.

(3) 10% Multiple choice tests (3 tests). ILO1, ILO2, ILO3 and ILO5

This assessment component requires students to complete 3 multiple choice tests. Each test comprises of 10 questions related to the material covered in class. The multiple choice tests will be computer based, and questions will be randomized for each student.

When assessment does not go to plan

When a student fails the unit and is eligible to resubmit, failed components will be reassessed through new assessments on a like-for-like basis. For group assignment component, an individual equivalent assignment will be provided with word count of 1,000.

Resources

If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.

If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. ACFIM0044).

How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours of study to complete. Your total learning time is made up of contact time, directed learning tasks, independent learning and assessment activity.

See the University Workload statement relating to this unit for more information.

Assessment
The assessment methods listed in this unit specification are designed to enable students to demonstrate the named learning outcomes (LOs). Where a disability prevents a student from undertaking a specific method of assessment, schools will make reasonable adjustments to support a student to demonstrate the LO by an alternative method or with additional resources.

The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit. The Board considers each student's outcomes across all the units which contribute to each year's programme of study. For appropriate assessments, if you have self-certificated your absence, you will normally be required to complete it the next time it runs (for assessments at the end of TB1 and TB2 this is usually in the next re-assessment period).
The Board of Examiners will take into account any exceptional circumstances and operates within the Regulations and Code of Practice for Taught Programmes.