The University of Newcastle, Australia
Not currently offered
Course code



10 units


6000 level

Course handbook


The recent global financial crisis has transformed banking and financial institutions and re-emphasized the growing importance of financial regulation. This course is designed to provide students with a deeper understanding of the drivers of change in the banking and financial sector in both developed and developing countries. Emphasis is placed on the basic concepts and theories that underpin the functioning of the banking and finance sector and highlight the nature and operation of modern international financial institutions under different market structures and degrees of openness. The course also explores the operations and conduct of monetary policy by the central bank and international financial institutions. Case studies are used to illustrate the functioning of banking and financial markets in a range of markets.


Not currently offered.

This Course was last offered in Trimester 3 - 2015.

Learning outcomes

On successful completion of the course students will be able to:

1. Describe the basic concepts and theories that explain the function and evolution of banking and finance.

2. Demonstrate insight into the properties and role of money and other financial assets within a modern monetary economy.

3. Examine the operations of modern banking and financial institutions as influenced by different market structures, regulatory regimes and degrees of international openness.

4. Critically evaluate the functions and operations of modern central banks and international financial institutions.

5. Analyse the role of the Bank of International Settlements and the functioning of international banking and financial markets and the interrelationships between theories, policy and impact of external shocks on the banking and financial sector.


Topics include but are not limited to the following:

  1. The Financial System
  2. The Economics of Interest Rate Fluctuations, Spreads and Yield Curves
  3. Rational Expectations, Efficient Markets and Equity
  4. Financial Structures, Transaction Costs and Asymmetric Information
  5. Innovation and Structures in Banking and Finance
  6. The Economics of Financial Regulation
  7. The Role of Central Bank
  8. International Monetary Regimes
  9. Foreign Exchange Dynamics
  10. Monetary Policy Tools and Targets
  11. Monetary Policy Transmission Mechanisms
  12. The Role of Financial Institutions


This course replaces GECO6470. If you have successfully completed GECO6470 you cannot enrol in this course.

Assessment items

Presentation: Presentations: online/seminar

In Term Test: Mid-semester test

Essay: Essay/Written Assignment

Formal Examination: Final Exam