Money, Banking and Finance MSc

Program Overview

This MSc Finance program offers specialized training in finance, banking, and monetary economics. Students develop core economic theory knowledge and practical skills through modules such as Modern Theory of Banking and Finance, Modern Finance, and International Money and Finance. The program culminates in an independent research dissertation, preparing graduates for careers in banking, financial institutions, and markets.

Program Outline

Degree Overview:

This course equips you well for a career in banking, financial institutions and markets. You'll take specialist modules in finance, banking and monetary economics as well as learning core economic theory. It will analyse the source of business cycle fluctuations, the aims of monetary policy in advanced economies, including the design of optimal monetary policy. It will also provide an advanced understanding of fiscal policy and debt dynamics. You will be introduced to the concept of financial frictions in the context of the last financial crisis, and gain an understanding of the aims and challenges faced by monetary policy makers. (15 credits)

• Econometric Methods: This module will develop your core econometrics skills.
The first half of the module provides a grounding in key econometric techniques covering elements such as the classical linear regression model, hypothesis testing and problems of non-spherical disturbances. More advanced topics are then introduced in the second half of the module. Specifically you will focus upon topics in microeconometrics: including modelling discrete binary variables; censoring and sample selection, and then topics in macroeconometrics including: economic forecasting; stationarity; and cointegration. You will also develop a knowledge of using econometric software Stata. (15 credits)
• Modern Theory of Banking and Finance: This module will give you a broad introduction into the economic literature on finance and banking.
The module emphasises both theoretical and practical considerations. On completing this module, you will have a working knowledge of lexicon, theory, and tools associated with monetary theory and understand how the economy and financial markets fit together. (15 credits)
• Modern Finance: This module will introduce you to some of the key concepts and methods in modern finance.
This is an analytical module, which reflects the quantitative nature of the subject and in which each topic is developed from first principles. You will then examine some of the empirical issues that arise in the practical use of the theory. (15 credits) You will learn to relate the various motives underlying international financial flows to their effects on real economic variables. The module will introduce mainstream theories of the determination of equilibrium exchange rates, both in the short run and the long run. You will also explore the causes of international financial crises and consider policy responses. (15 credits)
• Asset Pricing: This module will introduce you to the advanced principles of asset pricing in finance and the use of derivatives in risk management.
You will gain knowledge of how important derivative assets are traded, the pricing models for important derivative assets, and the principles of hedging. This is an analytical module, which reflects the quantitative nature of the subject and in which each topic is developed from first principles. The module will cover both the theoretical foundations of asset pricing, the issues that arise in the practical use of these models and their limitations. (15 credits)

Optional Modules:

(Two from the following)

• Applied Microeconometrics: The module provides examples and experience of applying standard microeconometric techniques to large sample surveys, with practical guidance on how to estimate and interpret results from different models.
The syllabus covers topics such as limited dependent variables, instrumental variables, panel data methods and decomposition methods. Throughout use will be made of the Stata econometric software. (15 credits)
• Applied Macroeconometrics: This module will enable you to understand recent applied literature in core journals of macroeconomics and finance, which uses time series methods, and prepare you for possible later research involving time series.
You will learn to identify the empirical features of macroeconomic and financial data, and how to analyse the dynamic interaction of macroeconomic variables over time using key econometric techniques. Throughout use will be made of the Stata econometric software. (15 credits)
• Industrial Organisation: This module will introduce you to contemporary topics in industrial organisation with a particular emphasis on the role of economic analysis of strategic decision making.
You will learn to use and appraise a range of economic techniques to make better strategic decisions. In this module you will build on and expand on your knowledge of microeconomics related to market structure; such as competition in oligopolistic industries. You will also become familiar with further oligopoly models (product differentiation, collusion, mergers) as well as behaviour in platform markets. We will also consider market implications when consumers are imperfectly informed (or naive) about prices or product characteristics. (15 credits) It will cover the role of monetary policy in the macro economy, and expose you to the latest theoretical developments in monetary theory and policy. You will also gain an appreciation of some of the limitations of monetary policy. (15 credits)
• Public Economics: This module will provide you with a comprehensive grounding in public economics.
Government policies, through fiscal policy instruments, can have a massive impact on the allocation of resources and the distribution of income in the economy. This module evaluates the government's ability to identify and achieve more efficient and equitable outcomes than the situation without intervention. You will apply the theory in the analysis of real world public policy programmes. (15 credits) The module provides a survey of all the main models of international trade and foreign direct investment, supplemented by applications to key contemporary policy issues. You will use a number of analytical tools and empirical methods to analyse trade and policy issues. (15 credits) You will gain an understanding of how evidence about policy evaluation is used to inform policy debates, and critically assess real world examples of policy evaluation. Examples will be drawn from health, labour, education and development economics. Throughout use will be made of the Stata econometric software. (15 credits)
• Econometrics of Machine Learning: This module provides a comprehensive exploration of machine learning techniques in econometrics, aiming to assess predictions and guide decision-making in practical economic and business scenarios.
It covers various machine learning methods, including regression, variable selection, shrinkage techniques, classification, tree-based approaches, ensemble learning, and neural networks. The module equips participants with the skills to discern the most fitting machine learning technique for a specific problem, facilitating the ability to make predictions or informed decisions. The practical application of machine learning techniques will be demonstrated in computer lab sessions, exclusively conducted using the R programming language. (15 credits)
• Corporate Finance: This module will equip students with an understanding of the fundamental theoretical principles of corporate finance and the practical function of these principles when formulating investment analysis and financial strategy.
It will provide students with a deeper understanding of the financial decisions faced by firms with particular reference to the time value of money; valuation techniques for stocks and bonds; financial statement analysis and modelling; the cost of capital and the capital structure decision; and the associated theoretical and empirical issues (15 credits)

MSc Dissertation:

In this module students will complete an extended piece of written work on a topic of their choice. The dissertation will demonstrate their ability to carry out independent research and make an original contribution to the discipline. (60 credits) Individual modules are occasionally updated or withdrawn. This is in response to discoveries through our world-leading research; funding changes; professional accreditation requirements; student or employer feedback; outcomes of reviews; and variations in staff or student numbers. In the event of any change we'll consult and inform students in good time and take reasonable steps to minimise disruption.

Overseas (2024 annual fee) : £29,700