*Course Description* 

This course explores the structure and function of banking and financial systems, covering financial markets, instruments, risk management, regulations, and fintech. Students will analyse real-world applications through case studies and presentations.

 

*Course Objectives* 

- Understand financial systems and intermediation. 

- Analyse financial instruments and risk management strategies. 

- Evaluate regulatory frameworks and ethical considerations. 

- Apply knowledge to real-world scenarios and fintech innovations.

 

*Prerequisites* 

Introduction to Finance (FINA 101) or Principles of Economics (ECON 101).

 

*Required Textbooks* 

1. Mishkin, F. S. The Economics of Money, Banking, and Financial Markets (12th ed.). 

2. Rose, P. S., & Hudgins, S. C. Bank Management & Financial Services (11th ed.). 

 

*Supplementary Readings* 

- Reports from BIS, IMF, Federal Reserve. 

- Articles from Journal of Banking & Finance, The Economist. 

 

*Course Outline* 

*Week 1: Introduction to Financial Systems* 

- Components: Banks, NBFCs, Markets. 

- Functions: Intermediation, Payments, Risk Sharing. 

 

*Week 2: Financial Markets* 

- Money vs. Capital Markets. Primary vs. Secondary Markets. 

 

*Week 3: Financial Instruments* 

- Equity, Debt, Hybrid Instruments. Valuation Basics. 

 

*Week 4: Derivatives* 

- Futures, Options, Swaps. Hedging and Speculation. 

 

*Week 5: Risk Management I* 

- Credit, Market, Operational Risks. 

 

*Week 6: Risk Management II* 

- Value at Risk (VaR), Stress Testing. 

 

*Week 7: Central Banking* 

- Monetary Policy, Tools, Financial Stability. 

 

*Week 8: Commercial Banking* 

- Credit Analysis, Liquidity Management, ALM. 

 

*Week 9: International Banking* 

- Forex, Cross-Border Risks, Trade Finance. 

 

*Week 10: Investment Banking* 

- IPOs, M&A, Underwriting. 

 

*Week 11: Financial Regulation* 

- Basel III, Dodd-Frank, Ethical Practices. 

 

*Week 12: Fintech Innovations* 

- Blockchain, Digital Currencies, AI in Finance. 

 

*Week 13: Case Studies* 

- 2008 Crisis, LIBOR Scandal. 

 

*Week 14: Group Presentations* 

- Case Study Analysis. 

 

*Week 15: Review & Final Exam* 

 

*Assessment* 

- *Midterm Exam (20%):* Week 7. 

- *Final Exam (25%):* Week 15. 

- *Assignments (15%):* Problem-solving exercises. 

- *Group Presentation (15%):* Weeks 12-14. 

- *Case Study Report (15%):* Week 14. 

- *Participation (10%):* Engagement in discussions. 

 

*Grading Scale* 

- A: 90-100%, B: 80-89%, C: 70-79%, D: 60-69%, F: <60%. 

 

*Policies* 

- *Attendance: * Mandatory; >3 absences impact grade. 

- *Late Work: * 10% penalty/day; no submissions after 1 week. 

- *Academic Integrity: * Zero tolerance for plagiarism. 

 

*Resources* 

- LMS: Lecture notes, forums. 

- Databases: Bloomberg, Reuters. 

 

*Important Dates* 

- Midterm: Week 7. 

- Presentations: Weeks 12-14. 

- Final Exam: Week 15.