The course provides an overview of banking institutions in the wider context of financial markets and institutions. The course examines the theory of banking, including the role of banks in the financial system, why banks exist, how they function, and their legal and governance structures. Regulatory and policy perspectives are discussed with respect to monetary policy, prudential regulation and supervision. Bank performance and risks incurred are analysed with regards to the banking book and trading book. The technicalities of financial instruments and interest rates are analysed to the extent that they concur to the management of the bank's gains and losses and risk return tradeoff. Simple applications in R will enrich the learning experience.