MSc Central Banking & Financial Regulation

Course Details

Bank of England staff have a number of options on this programme, as detailed below:

Postgraduate Certificate

For Bank of England staff looking at a first stepping stone into a Postgraduate qualification, successful completion of the first four modules yield a Post Graduate Certificate in Central Banking & Financial Regulation from the University of Warwick.

The first four modules at this level are all required modules.

Postgraduate Diploma

For Bank of England staff wishing to develop their knowledge and skills further after receiving their Postgraduate Certificate, successful completion of the next four modules yield a Post Graduate Diploma in Central Banking & Financial Regulation from the University of Warwick.

At this level this includes a variety of required and elective modules, all of which can be explored further below.

 

MSc in Central Banking & Financial Regulation

Successful completion of the final year module and passing dissertation yield the MSc in Central Banking & Financial Regulation from the University of Warwick.

To achieve this qualification, students have a choice of one of two elective modules as well as their dissertation.

Please note: This proframme is for employees of the Bank of England. If you are not an employee of the Bank of England, please visit the course page for our MSc Global Central Banking and Financial Regulation programme.

 

PG Certificate Modules

Advanced Monetary Policy

This module provides the analytical and empirical tools from macroeconomics and econometrics to understand the role of monetary policy and how monetary policy is implemented. There is an emphasis on the econometric tools of monetary policy. The module will discuss the relative roles of “data” and “theory” when modelling monetary policy, and there is use of econometric software and empirical datasets to illustrate use of methods.

Central Banks, Financial Systems & Systemic Risks

This module provides a rigorous discussion of the role of banks and insurance companies in a modern economy. It studies the fragilities in fractional reserve banking, the role of the central bank, and the weaknesses caused by the shadow banking sector. The module will include discussion of Central Counterparties, exchanges, and payment systems. We will explore the causes of historic bank failures and systemic crises.

Financial Regulation & Supervision in Practice

This module sets out how regulation and supervision are executed in practice with an emphasis on more detailed tools and techniques used by regulators/supervisors. There is an emphasis on capital regimes, particularly development of the Basle Capital Adequacy Directive regime and Solvency 2. The module includes the tools required for business analysis such as the ability to analyse financial statements and regulatory returns.

Financial Stability & Approaches to Financial Regulation and Supervision

This module studies the rationale behind financial regulation and supervision: what are the market failures regulators are addressing, and are there tools in principal which can help. The module develops the distinction between regulation and supervision and studies the systemic weaknesses which have led to differing policy responses: Dodd Frank, Ring-Fencing, Liikanen. The module will provide the skills to allow students to understand the totality of the PRA rule book.

PG Diploma Core Modules

International Economics & Unconventional Monetary Policy

This module develops the study of monetary policy to allow for both international capital flows, and to explore the powers of the central bank at the zero lower bound. The inability of standard theories to either explain or forecast foreign exchange rates is highlighted. The module uses econometric tools to investigate the effects of unconventional monetary policy further.

Financial Risk Management

The emphasis in this module is on risk management in banks and insurers. The module covers PRA guidance on the risk framework and the appropriate level of risk appetite. The module supports advanced capabilities in analysing financial statements and regulatory returns to identify key risks areas and allows a generalist understanding of Internal risk board / Solvency 2 IMAP modelling (Internal Model Approval Process).

PG Diploma Elective Modules

Advanced Leadership and Judgment

This module studies the principles underlying leadership in industry, government, and society. It reviews approaches to effective leadership, shared leadership, leading for innovation, and instances when leadership “goes wrong.” The module draws on strands of psychology to obtain insights into the complexity of human beings, their motives, choices and actions. Further insights from leadership in banking and insurance are added via BoE case studies and guest lectures.

Asset Pricing

This module covers the foundational material in asset pricing to a high level suitable for MSc level research. Throughout the module, we will use ‘real’ financial market data in examples, workshops and exercises to estimate the parameters of, or empirically ‘test’ the validity of the models, concepts, and methodologies we develop in the module.

Behavioural Finance

There are various phenomena in financial markets that remain unexplained under the traditional model, which is based on rationality. These phenomena are broadly labelled “anomalies”. This module will first highlight possible deviations from rationality we may think are prevalent in human nature, and then discuss how these deviations can explain these anomalies. Examples of such anomalies are price momentum, value effects, excessive trading activity, excessive corporate activity, excess volatility in asset prices, bubbles and crashes. This is a strength of WBS and an important topic in current finance and financial regulation debates.

Big Data Analytics

This module explores how big data can be used to enhance a central bank or regulator to detect when the financial system or particular firms may be at risk. The module covers a range of examples including detection of societal events, such as economic and financial instability, riots, disease outbreaks, resource shortages, and responses to natural disasters. The module will help students use digital traces to anticipate real world events and collective human behaviour.

Corporate Finance

This module covers the core material in corporate pricing to a high level suitable for MSc level research. The module will use modelling techniques and present the empirical evidence relevant to the study of how corporates, in particular banks and insurance companies, fund themselves.

From Strategy to Organisational Performance
This module considers both technical and behavioural aspects of strategy implementation and performance management. Participants learn how to develop and use a variety of tools and techniques, and reflect on how these could be introduced in their business units. The module uses case studies to facilitate learning: e.g. managing and delivering strategic objectives in large IT crossdepartmental projects.
Modelling for Banks and Insurers

This module outlines the key business models in the banking and insurance sectors and contrasts the approaches between the two sectors. The module develops understanding of the various types of models that exist within banks and insurers, as well as the typical teams and structures who implement/risk manage these models. The module provides an overview of the importance of models in the regulatory framework. In particular, understanding the implications from Solvency II (Pillar 1 Capital) for insurers, and from CRR / CRD for Banks. The module will help participants outline key items to review and challenge when assessing the robustness of a firm’s modelling framework.

International Financial Management

This module builds on the Financial Risk Management module by focusing on international effects; and including discussion of taxation and non-financial services firms. The module also extends participants’ knowledge of business modelling skills. The module also features advanced discussion of regulatory capital for financial firms (banks and insurance companies).

Masters year

Asset Pricing

This module covers the foundational material in asset pricing to a high level suitable for MSc level research. Throughout the module, we will use ‘real’ financial market data in examples, workshops and exercises to estimate the parameters of, or empirically ‘test’ the validity of the models, concepts, and methodologies we develop in the module.

Corporate Finance

This module covers the core material in corporate pricing to a high level suitable for MSc level research. The module will use modelling techniques and present the empirical evidence relevant to the study of how corporates, in particular banks and insurance companies, fund themselves.

 

See core and elective modules for this course More Less

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