Professional Documents
Culture Documents
Financial Institutions
Mazhar Farid Chishti
Class:
Credit Hour:
COURSE OBJECTIVES
This course develops the understanding of structure and functions of financial
institutions. In economics financial markets channel funds from lenders to
borrowers. It explains the mechanism that allows people to easily buy and sell
(trade) financial securities and commodities and other fungible items.
Time period
Week One
Week Two
Week Three
Week Four
Week Five
Week Six
Week Seven
Week Eight
Week Nine
Topics to be covered
The Financial System: Introduction and basic concepts
of Financial System, Function of Financial System and
Financial Instruments.
Globalization of Financial Markets: Financial Institutions
and its classification
The Banking Sector: Introduction and main activities of
banking. Non-banking Financial Institutions, Contractual
Saving Institutions.
Finance Companies: Money Market Corporations, Nonbank Depository Institutions, Managed Funds. Public
unit trust.
The Share Market and Corporations: The Nature of
Corporations, The Share Market and its types, the
development of Share Market.
Growth in Debt Market: factors affecting the supply of
Credit, factors affecting the demand of debt, interaction
between supply and demand, short-term debt.
Trade Credit: intercompany loans, bank overdraft, Fully
drawn advances (FDA), Commercial bills, Promissory
notes, Negotiable Certificate of deposits.
Inventory Notes: Medium to long-term debt, Term Loans
and Mortgage Finance. Debentures and Unsecured
loans and subordinate debt. Leasing and types of
Lease. Project and Structured Finance.
Government Debt Market and Monetary Policy: impact
on the system liquidity. Exchange settlement accounts.
Week Ten
Week
Week
Week
Week
Week
Eleven
Twelve
Thirteen
Fourteen
Fifteen
Recommended Books:
1- Financial Markets and Institutions (Fifth Edition) by Frederic S.
Mishkin, Stanely G. Eakins
2- Financial Institutions, Instruments and Markets (Third Edition) by
Christopher Viney
Grading Policy
Grades will be awrded as per the LGU grading Policy which is given below;
Mid-term
25%
Final-term
50%
Sessional Marks 25%