Diploma in Banking - Level 3

Accredited by ABC Awards | Assessment included in the Price | Endorsed Certificate & Unit Summery

South London College


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£49 inc VAT (was £399)
Offer ends 24 September 2019
Study method
Online, self-paced
80 Hours
Access to content
365 Days
Level 3 Diploma in Banking
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  • Exam(s) / assessment(s) is included in price

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A career in banking is desired worldwide due its high pay, job reputation and many other associated job benefits. However, getting into this competitive industry requires you to have extensive knowledge and skills on banking, and this Diploma in Banking – Level 3 has been developed just to do that. This banking course will get you acquainted with all the necessary banking principles and concepts to help you advance your banking career or to help you expand your education in the area.

Starting with the essence of banking within an economy, this course will systematically guide you on the operations of a banking system. You will come to understand the role of banks in money creation, after which you will learn how to critically evaluate current and major practices of banking and finance. How to manipulate numerical and financial data and how to apply statistical and mathematical concepts within a banking context will also be thoroughly emphasised in this program.

Many types of banks operate within a given economy, with each bank having different customers and providing different banking services.. This course is set to explore all of these banking structures and its services, followed by modules that will discuss the principles and procedures of the business information systems. This course will also make you an expert in analyzing business activities and forecasting financial projections. By the completion of this course, you will walk away with an accredited certification that will help you make substantial progress within the banking industry.

The course has been endorsed under the ABC Awards and Certa Awards Quality Licence Scheme. This means that Global Edulink* has undergone an external quality check to ensure that the organisation and the courses it offers, meet defined quality criteria. The completion of this course alone does not lead to a regulated qualification* but may be used as evidence of knowledge and skills gained. The Learner Unit Summary may be used as evidence towards Recognition of Prior Learning if you wish to progress your studies in this subject. To this end the learning outcomes of the course have been benchmarked at Level 3 against level descriptors published by Ofqual, to indicate the depth of study and level of demand/complexity involved in successful completion by the learner.

The course itself has been designed by South London College to meet specific learners’ and/or employers’ requirements which cannot be satisfied through current regulated qualifications. ABC Awards & Certa Awards endorsement involves robust and rigorous quality audits by external auditors to ensure quality is continually met. A review of courses is carried out as part of the endorsement process.

*South London College is an approved reselling partner for ABC Awards courses under Global Edulink

*Regulated qualification refers to those qualifications that are regulated by Ofqual / CCEA / Qualification Wales


Level 3 Diploma in Banking
Endorsed by ABC Awards

Course media


What Will I Learn?

  • Gain a clear understanding of how major context within the banking industry operate.
  • Learn how to critically evaluate current and major practices of banking and finance.
  • Learn how to manipulate numerical and financial data, and the understanding and ability to apply statistical and mathematical concepts.
  • Understand the principles and procedures of the business information systems.
  • Learn how to analyse business activities and forecast financial projections.
  • Gain an accredited qualification that will take your skills and knowledge to the next level.

Course Curriculum

1: Essence of Banking

  1. Essence of banking
  2. Introduction
  3. The financial system
  4. Introduction
  5. Lenders and borrowers
  6. Financial intermediaries
  7. Financial instruments
  8. Financial markets
  9. Money creation
  10. Price discovery
  11. Allied participants on the financial system
  12. Principles of banking
  13. Introduction
  14. Fundamental issues in banking
  15. Basic raison d’être for banks: information costs and liquidity
  16. Introduction
  17. Information costs
  18. Asymmetry in liquidity preference
  19. OTC versus securities markets
  20. Broad functions of banks
  21. Introduction
  22. Facilitation of flow of funds
  23. Efficient allocation of funds
  24. Assistance in price discovery
  25. Money creation
  26. Enhanced liquidity
  27. Price risk lessened for the ultimate lender
  28. Improved diversification
  29. Economies of scale
  30. Payments system
  31. Monetary policy function
  32. The balance sheet of a bank
  33. Introduction
  34. Share capital (equity)
  35. Liabilities
  36. Assets
  37. Liability and asset portfolio management
  38. Money creation
  39. Off - balance sheet activities
  40. Introduction
  41. Off – balance - sheet activities that carry risk

2: Money Creation

  1. Money creation
  2. Learning objectives
  3. Introduction
  4. What is money?
  5. Measures of money
  6. Monetary banking institutions
  7. Money and its role
  8. The cash reserve requirement
  9. Money creation does not start with a bank receiving a deposit
  10. Introduction
  11. Notes and coins deposited
  12. Government spends
  13. Money creation starts with a bank loan
  14. Money creation is not dependent on a cash reserve requirement
  15. Is “money supply” a misnomer?
  16. Interest
  17. Rate
  18. Banks’ prime lending
  19. Rate
  20. Supply
  21. The money identity and the Creation of money
  22. Role of the central bank in money creation

3: Risk in Banking

  1. Risk in banking
  2. Learning outcomes
  3. Introduction
  4. The concept of risk
  5. Interest rate risk
  6. Definition
  7. Ideal and extreme portfolios
  8. Reality
  9. Management of interest rate risk
  10. Introduction
  11. Interest rate repricing gap analysis
  12. Duration analysis
  13. Market risk
  14. Liquidity risk
  15. Definition
  16. Balance sheet changes resulting from deposit withdrawals and drawdowns on loan facilities
  17. Conditions for creation of liquidity
  18. Introduction
  19. Impeccable record
  20. Volume of and the type of liquid assets
  21. Active secondary financial markets
  22. Measures of a bank’s liquidity exposure
  23. Bank liquidity and a “bank run”
  24. The central bank and the bank run
  25. Deposit insurance
  26. Credit risk
  27. Definition
  28. Asymmetric information, adverse selection and moral hazard
  29. Management of credit risk
  30. Introduction
  31. Avoidance
  32. Diversification
  33. Compensating balances and monitoring of business transactions
  34. Screening
  35. Monitoring
  36. Long - term relationship building
  37. Loan commitments
  38. Collateral requirement
  39. Credit rationing
  40. Specialization in lending
  41. Credit derivatives
  42. Sovereign credit risk
  43. Banking statute returns in respect of credit risk
  44. Currency risk
  45. Counterparty
  46. Risk
  47. Operational risk
  48. Introduction
  49. Information technology systems risk
  50. Human resources risk
  51. Reputation risk
  52. Compliance risk
  53. Legal and documentation risk
  54. External risk

4: Bank Models

  1. Contents
  2. Bank models & prudential requirements
  3. Learning outcomes
  4. Introduction
  5. Bank models
  6. Introduction
  7. Commercial banks
  8. Mutual banks/building societies
  9. Merchant and investment banks
  10. Trading banks
  11. Private Banks
  12. Islamic banks
  13. Development banks
  14. Micro – credit banks
  15. Co – operative banks
  16. Dedicated banks
  17. Discount houses
  18. Rationale, objectives & principles of regulation
  19. Introduction
  20. Rationale for regulation
  21. Introduction
  22. Systemic malfunction
  23. Market imperfections
  24. The moral hazard problem
  25. Economies of scale
  26. Consumer confidence and consumer demand for regulation
  27. Supplier demand for regulation
  28. Objectives of regulation
  29. Introduction
  30. Promotion of financial stability
  31. Promotion of fair and healthy competition
  32. Promotion of consumer protection
  33. Principles of regulation
  34. Introduction
  35. Efficiency-related principles
  36. Stability-related principles
  37. Conflict-conciliatory principles
  38. Regulatory-structure principles
  39. General principles
  40. Prudential requirements
  41. Introduction
  42. Basel accords
  43. Basel
  44. Introduction
  45. Pillar 1: minimum capital requirement
  46. Pillar 2: supervisory review (regulatory response to Pillar 1)
  47. Pillar 3: market discipline (promotes greater stability in the financial system)
  48. Basel III
  49. The banking statute: general
  50. The banking statute: prudential requirements
  51. Introduction
  52. Share capital and unimpaired reserve fund
  53. Liquid assets
  54. Large exposures
  55. Reserve requirement
  56. Returns

5: End Notes

End notes

Access Duration

The course will be directly delivered to you, and you have 12 months access to the online learning platform from the date you joined the course. The course is self-paced and you can complete it in stages, revisiting the lectures at any time.

Method of Assessment

In order to complete the Diploma in Banking – Level 3 successfully, all students are required to complete a series of assignments. The completed assignments must be submitted via the online portal. Your instructor will review and evaluate your work and provide your feedback based on how well you have completed your assignments.


At the end of this course successful learners will receive a Certificate of Achievement from ABC Awards and Certa Awards and a Learner Unit Summary (which lists the components the learner has completed as part of the course).

Course Code: QLS-04478

Awarding body (Accreditation)

ABC Awards and Certa Awards have long-established reputations for providing high quality vocational qualifications across a wide range of industries. ABC Awards and Certa Awards combine over 180 years of expertise combined with a responsive, flexible and innovative approach to the needs of our customers.

Renowned for excellent customer service, and quality standards, ABC Awards and Certa Awards also offer regulated qualifications for all ages and abilities post-14; all are developed with the support of relevant stakeholders to ensure that they meet the needs and standards of employers across the UK.

Who is this course for?

  • Financial Officer
  • Accountant, Finance Managers
  • Students studying Finance


  • Learners should be age 19 or over, and must have a basic understanding of Maths, English, and ICT.
  • A recognised qualification at level 2 or above in any discipline.

Career path

  • Accountant - £28,612 per annum
  • Banker - £24K per annum
  • Relationship Banker - £29,703 per annum
  • Accounts Executive - £22,196 per annum
  • Staff Accountant - £25,261 per annum

Questions and answers

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