MASTER OF COMMERCE IN BANKING AND FINANCE DEGREE

Overview

1. INTRODUCTION

1.1 These regulations shall be read in conjunction with the Faculty of Commerce Regulations and the General Academic Regulations for Postgraduate Diplomas and Taught Masters degrees offered by the Midlands State University.
1.2 The degree shall be awarded to candidates who have successfully completed the programme and passed the examinations in accordance with Faculty Regulations.

2. OBJECTIVES

2.1 The Master of Commerce degree in Banking and Finance at Midlands State University seeks to give students an opportunity to develop and promote critical, analytical and creative thinking in the dynamic field of banking and finance.
2.2 The programme aims to develop sound conceptual, technical, analytical and problem solving skills that are required for success in the banking and finance profession.


Entry Requirements

3. ENTRY REQUIREMENTS

3.1 To qualify for entry into the Master of Commerce degree in Banking and Finance, an applicant should have an Honours degree in Banking and Finance, Economics, Accounting or their equivalents.
3.2 Other four year undergraduate degrees can be considered at the discretion of the department, provided that: (i) the applicant has at least three years practical experience in banking and finance, and (ii) the applicant has over and above the degree, a full diploma in banking and finance.

Career Prospects

4. CAREER PROSPECTS

Graduate in the Master of Commerce degree in Banking and Finance can work for the following organisations: commercial banks, merchant banks, development banks, discount houses, asset management companies, building societies, finance houses, micro financial institutions, insurance companies, stock broking companies, financial advisory companies, central banks, stock exchanges, private sector firms, government departments, regional and
international organisations, consultancy and non-governmental organisations.

5. GENERAL PROVISIONS

5.1 Formal examinations will be administered at the end of each academic semester.
5.2 The programme shall be completed in a minimum of two years (four semesters) on a block release basis.
5.3 A student requires 64 credits to complete this programme.

Assessment

6. EXAMINATIONS

6.1 For a student to be allowed to write examinations they must have:
6.1.1 satisfactorily attempted approved modules of study including submission of required written assignments.
6.1.2. attended compulsory classes.
6.1.3 participated in prescribed seminars, tutorials and practical classes.

7. ASSESSMENT

7.1 Formal examinations will normally be written papers, but in some cases the examiner may test the candidate orally.
7.2 Continuous assessment shall account for 40% of the overall assessment, while the final examination shall account for 60% of the overall assessment.
7.3 The aggregate pass mark shall be 50%.

8. SUPPLEMENTARY EXAMINATIONS

8.1 A student who fails and obtains a mark less than 50%, but not less than 40%, may on the recommendation of the Board of Examiners, and subject to the approval of the Senate, be permitted to sit for a supplementary examination in the respective module(s) failed in the final year of the programme.

8.2 Overall assessment of the supplementary examination will not incorporate continuous assessment. Supplementary examinations shall be marked as “Pass” or “Fail” and the overall maximum mark awarded in a supplementary examination shall be 50%.

9. PROVISION FOR PROGRESSION

9.1 A student will retain credits for modules passed.
9.2 A student who after eight semesters has not completed the requirements for the degree shall be required to apply for re-registration, which will only be permitted on receipt of a satisfactory motivation.

10 DEGREE CLASSIFICATION/WEIGHTING

For the purposes of degree classification the parts of the degree programme will be classified as follows:

Level 1: 50%

Level 2: 50%

(The dissertation carries the weight equivalent to 3 taught modules)


Programme Structure


 PROGRAMME STRUCTURE
  
Level 1 Semester 1
Code Module Description
Credits
MBF701
MBF702
MBF703
MBF704
Financial Markets and Regulations
Strategic Banking and Bank Management
Financial Statements Analysis and Asset Valuation
SME Banking and Development

4
4
4
4
Level 1 Semester 2

MBF705
MBF706
MBF707
MBF708

Advanced International Banking and Finance
Risk Management and Financial Institutions
Development Finance
Corporate Governance and Ethics

4
4
4
4
Level 2 Semester 1
MBF801
MBF802
MBF803
MBF804
Advanced Quantitative Methods in Banking and Finance
Behavioural Finance and Investment Analysis
Financial Innovation and Structured Finance
Advanced Treasury Management

4
4
4
4
Level 2 Semester 2
MBF805
MBF806
Financial Engineering and Modelling (MBF801,MBF803)
Dissertation
4
24

MODULE SYNOPSES

MBF701 Financial Markets & Regulations
This module aims at developing critical thinking in the area of integrating corporate strategy with financial markets and other stakeholders. Topics included in the module are global trends in capital raising, empirical evidence on cost of equity estimation techniques, allocating capital and
corporate strategy, corporate taxes and the impact of financing on real asset valuation, how taxes affect financing choices, how taxes affect dividends and share repurchases, bankruptcy costs and debt-equity holder conflicts, capital structure and corporate strategy, how managerial incentives
affect financial decisions, information conveyed by financial decisions, mergers and acquisitions, short termism, demergers/unbundling. The module cements theory with empirical evidence to enable students to make informed corporate decisions.

MBF702 Strategic Banking & Bank Management
In today’s dynamic and volatile global economy, business leaders must continually rethink banking and financial strategies. The main objective of this module is to enable students to acquire sufficient knowledge in strategic banking and advanced bank management. This will enable them to think critically, lead ethically and to be equipped on how to react inquisitively to current events,in order to determine actionable insights in the changing environment. The course surveys and analyses pertinent issues in current performance evaluation; internal and external situational analysis; strategy formulation, selection, implementation and control; bank capital management; asset and liability management; loan management; profit and growth management and financial innovation.Frequent empirical estimation of models allows students to enhance skills necessary to conduct independent research in the field.

MBF703 Financial Statements Analysis and Asset Valuation
This module forms the pillar for understanding the banking and finance discipline. It seeks to enhance the knowledge of interpreting and analysing financial statements in order to reveal the root of the reported balance sheet size and the ultimate bottom-line. Cases of financial statement reporting fraud like Enron, and Long Term Capital Management point to the need for an in-depth analysis of financial statements. Topics covered in this module include asset measurement and valuation, measuring financing mix, differences in Accounting Standards and practices, market-based valuation: Price and
enterprise value multiples, free cash flow valuation models, private company valuation, valuation of a services firm, valuation of a financial firm and financial planning. The module will incorporate a case study learning approach, evaluation and critique of empirical literature.


MBF704 SME Banking & Development
The growing number of SMEs in developing countries coupled with the role that these SMEs play in economic development requires an in-depth understanding of how banks can participate in the development of these enterprises. SME development is pivotal to both government policy
formulation and strategic financing choices by banks and other financial institutions. Topics covered include SME regulation, the role of micro-banking, role of SMEs in economic development, SME banking institution building, SME banking and capacity building, SME banking advisory, SME performance bonds, banking on women, joint venture services, multilateral institutions and SME development, SME banking risk management, leasing and strategies in bank lending to SMEs. The module will incorporate case studies and empirical literature on SME banking.


MBF705 Advanced International Banking & Finance
Global financial integration has prompted the importance of international capital flows and the need to understand the dynamic global economic behaviour. Topics covered include, trends in international banking and finance, international banking, international bond markets, international
equity markets, international portfolio investment, foreign direct investments and acquisitions, international capital structure, international capital budgeting, bank based and market based economic orientations, an evaluation of multilateral institutions and their role in international banking and finance. The module makes use of empirical studies and as such journal articles and periodicals will be used.


MBF706 Risk Management & Financial Institutions
This module seeks to provide students with an in-depth understanding and applicability of advanced risk management techniques. The module makes use of real world case studies to draw risk management mistakes to avoid. Topics covered include enterprise risk management techniques, capital market regulation and compliance, liquidity risk, model risk, advanced hedging techniques, correlations and copulas, risk management and corporate strategy. Students are expected to apply these techniques to banking, insurance, pension funds companies, mutual funds, hedge funds and other institutional investors.


MBF707 Development Finance
Development finance has become a major area of academic research and requires a rigorous approach to sustain economic development. The growing number of multilateral development institutions, the increasing popularity of Islamic finance, and the significance of remittances in development finance models are becoming crucial elements in economic development. Topics covered in this module include municipal finance, infrastructure finance, Private Public Partnership arrangements, innovations in development finance, Agricultural finance, real estate finance, secondary markets for development finance (REITs, PUTs, etc.), valuation of development projects, project management and social responsible investment (SRI).

MBF708 Corporate Governance & Ethics
This module aims to equip students with up-to-date professional standards and ethical practices that are paramount in the banking and fnance industry. It will provide guidance to the people who grapple with real ethical problems in the investment profession, where theory meets practice and ethics gain
meaning. Corporate governance systems across the world will be covered e.g. governance systems in bank-based and market-based economies. The module includes studies on challenges of owner managed banks vis-à-vis separation of powers, the chairman, board, shareholders and executive
management. The Kings Report III code, SOX Act on corporate governance will also be covered clearly articulating and evaluating the practices prescribed by the code.

MBF801 Advanced Quantitative Methods in Banking & Finance
The module enriches students with some financial insights, intuitions and rudimentary understanding of quantitative methods in banking and fnance. The course extensively reviews some important tools in modern financial econometrics including Autoregressive Models, VBA, MA, ARCH, ARIMA, EGARCH, Co-integration Tests, Univiriate Bivariate models, Multivariate Models using Econometric programs like Microft, PC Give, STATA, E-Views, and other relevant packages.

MBF802 Behavioural Finance & Investment Analysis
This module seeks to explore various investment strategies and their underlying investment philosophies. The module covers the following topics: trading costs with non-traded assets, behavioural fnance, value investing, growth investing, asset allocation, portfolio construction, market timing, indexing, fxed income and equity portfolio management strategies, execution of portfolio decisions (trading), performance evaluation, momentum, contrarian, opportunistic investment philosophies, fnding an investment philosophy, evaluating investment philosophies, management of individual/family investor portfolios, management of institutional investor portfolios, pension plans and employee beneft funds, mutual funds, pooled funds, and ETFs and tax effciency.

MBF803 Financial Innovation & Structured Finance
Structured finance remains a pillar for sustainable economic growth and the financial sector in general. This module seeks to provide students with critical and innovative thinking in the field of banking and finance. In doing so, students will be encouraged to be creative and innovative in financial product design to suit the ever changing global economic landscape. Furthermore, theoretical and empirical literature will be reviewed and critiqued to promote independent critical thinking among students. Topics to be covered include securitization, swaps, private equity finance, LBOs, MBOs, credit default swaps, valuation mistakes, and evaluation of the role played by structured finance past crises.

MBF804 Advanced Treasury Management
This module seeks to detail treasury management strategies and how they enhance corporate and bank value. Topics included in the module are yields spreads, arbitrage-free valuation approach, yield measures, spot rates and forward rates, term structure and volatility of interest rates, valuing bonds with embedded options, mortgage-backed sector of the bond market, asset-backed sector of the bond market, valuing mortgage-backed and asset-backed securities. The module shall make extensive use of real-world case studies, journal articles and periodicals.


MBF805 Financial Engineering & Modelling
This module looks at the pricing of derivative securities and how new derivative products can be designed from the standard derivative instruments. The module will include aspects such as fnancial engineering and fnancial re-engineering with the aim of developing home-grown innovative solutions and allowing exchange of value in the context of emerging market economies. Furthermore, this module teaches value-added skills in constructing fnancial models in Microsoft Excel, Eviews and Stata. It also covers issues related to the hedging of portfolios using derivative instruments, modelling fundamentals of corporate fnance, investments, derivatives and fnancial market instruments. The module equips students with up-to-date tools of fnancial analysis and develops hands on excel modelling skills and help students to gain practical understanding of the core concepts in fnance.


MBF806 Dissertation
The dissertation covers a period of two semesters. Students will be required to prepare a proposal before the end of the 1st semester of their second year of study. A dissertation writers’ workshop will be hosted by the department before the end of the first semester of the second year. The dissertation topic should be chosen based on the strength of the student’s research interest. However, supervision constraints may result in changes in dissertation topics. The department reserves the right not to supervise a student’s topic of choice. The dissertation should have a minimum of 20 000 words.