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Course Outline BAN-474 Financial Institution and Capital Market Chapter 1: Role of Financial Markets and Institutions

(Madura & Rose; Chapter 1) Overview of financial markets and institutions, the global economy and the financial system, functions performed by the global financial system and financial markets, types of financial markets within the global financial system, securities traded in financial markets, valuation of securities in financial markets, market efficiency, global financial markets, role of financial institutions in financial markets Chapter 2: Security Markets (Slide) Meaning of security market, Types of security market, Characteristics of security market, Dhaka Stock Exchange Ltd. overview, legal control, major functions, three indices, share categorization, DS-20 index, Depository-definition, necessity, eligible securities, method of operation, Central Depository Bangladesh Ltd(CDBL).- functions, Trading mechanism at DSE, Seven important issues regarding trading of securities, circuit breaker, Settlement process, Comparison between floor trading and screen based trading, Types of markets in DSE, Role of Central Depository System (CDS) in trading shares, Chittagong Stock Exchange (CSE) Ltdoverview, legal control, functions of the various departments, trading system, Computation of opening and closing price, Securities and Exchange Commission (SEC) of Bangladesh-, Duties of the SEC, Other securities markets besides exchanges, Types of traders, Sources of trading cost Chapter 3: Determination of Interest Rates (Madura-2, Rose-5) Functions of interest rate, Classical theory of interest rate, Liquidity preference theory of interest rate, Loanable funds theory of interest rate, rational expectations theory of interest rates, Economic forces that affect interest rates, forecasting interest rates Chapter 4: Central Bank and Monetary Policy (Madura- 5, Rose-14) Organization and functions of BB, General versus selective credit controls, interest rate targeting, Mechanics of monetary policy, Tradeoff in monetary policy, economic indicators monitored by central bank, impact of monetary policy on various sectors, integrating monetary and fiscal policies, monetary policy in a global environment, Limitations of monetary policy Chapter 5: Bond Markets (Madura-7) Background on bonds, treasury and federal agency bonds, Municipal bonds, Corporate bonds, Bond index yield quotations, corporate restructuring by bonds, Structural notes, Institutional use of bond markets, Bond market of DSE, Globalization of bond markets

Rose . Property and casualty insurance operations. Investment of life Insurance companies. sources of income. Structure of commercial banks in Bangladesh. Investment strategies of pension fund. Venture capital and private equity funds. Subprime loan crisis. Health care insurance operations. brokerage services. Sources and uses of finance company funds.Jeff Madura  Money and Capital Market ( 8th Edition). Rose-16) Sources and uses of funds of savings institutions. Bank sources of funds. valuation of a savings institution. advantages and disadvantages of credit union. Rose-17) Types of finance companies. Uses of funds by banks. Real estate investment trusts. Pension fund management. credit union exposure to risk Chapter 8: Finance Companies and Mutual Fund Operations (Madura-22. Stock mutual fund categories. Business insurance. Sources and uses of funds of credit union. Off-balance Sheet activities. Factor affecting the future growth of pension funds References:  Financial Markets and Institution (8th Edition). Money creation and destruction by banks and bank accounting. Changing risk patterns in Property/Liability coverage. savings institution crisis. interaction with other financial institutions. International banking Chapter 7: Thrift Operations (Madura-21. Rose-17) Background of insurance. Branch banking. Bond mutual fund categories. interaction with other financial institutions Chapter 10: Insurance and Pension Fund Operations (Madura-25. 23. Rose-15) Background of commercial banks in Bangladesh. Risks of securities firms. Life insurance operations. finance company’s exposure to risk. valuation of an insurance company. background on pension fund. interaction with other financial institutions Chapter 9: Securities Operations (Madura-24) Investment banking services. Exposure to risk. Management of interest rate risk. Exposure to risk. Insurance principle. valuation of a finance company. Interaction with other financial institutions. valuation of a security firm. methods of industry financing. Money market funds.Peter S. Hedge funds. Background on mutual fund. interaction with other financial institutions.Chapter 6: Commercial Bank Operation (Madura-17.