FIN 301 : Financial Institutions and Markets

School of Business Studies, IBA Karachi

Program: BBA/BSAF
Department Offering: Finance
Class ERP Number: 6612/6616
Faculty: Muniba Abdullah, CFA

Class details

Class Timing and 8:30 a.m. to 9:45 a.m & 10.00 a.m. to 11:15 a.m., Main Campus
Room 11:30 p.m. to 12:45 p.m. & 1:00 p.m. to 2:15 p.m., Main Campus

Session Days Saturday

Credit Hours: 3 Credit Hours

Email mabdullah@iba.edu.pk
Contact # 03212042162

Course Description

The course is designed for undergraduate students, with an objective to familiarize them with
financial system’s role in an economy, from a global as well as local perspective. Theory covered may
introduce students as to how financial markets (e.g., stock, bond, and foreign exchange markets) and
financial intermediaries (i.e., Central & commercial banks) perform and how they supplement each
other. In addition, it covers the latest developments in financial technology with special focus on how
decentralized technologies have the potential to disrupt conventional financial services. The course
also helps students comprehend news emanating from global & local financial markets and its
impact on businesses and households.

BBA Program Learning Goals

1. Communication Skills
Students will become effective speakers, listeners, writers and team members

2. Knowledge of All Business Disciplines

Students will gain a broad based understanding of a range of business disciplines

3. Critical Thinking
Students will develop the ability to classify, analyze and evaluate the available data using
appropriate techniques for effective decision making.

4. Ethics
Students will have an awareness and understanding of ethical issues.

5. Glocal Mindset
Students will develop a focus on global connections with local contexts through awareness of
diversity across cultures and markets.
 Course Learning Outcomes (CLOs)

1. Students will understand the terminology and basic concepts underlying financial market
mechanism.
2. Students will appreciate the role of interest rates in economic welfare of society.
3. Students will learn indispensable relationships which signal financial crises.
4. Students should be able to differentiate between local and global business practices and
cultures. (LG503)
5. Students will recognize the potential of financial technology in local and global context.
6. Students will develop a habit of following local news and its implication on a global context.

AOL Assessment Mapping

PLG mapped: The course is mapped with BSAF program learning goal LG5 and Program learning objective
LG503
Assessment Tool: Quiz

Teaching and Learning Methodology

1. Students are required to read the topic prior to the lecture.

2. The course assignment is a written report on a topic of interest.
3. Lecture presentations will be uploaded on Learning Management System (LMS).
4. Unannounced quizzes will be taken to gauge student progress.

Course Learning Outcomes mapped to Program Learning Outcomes

Knowledge of
Communication Critical Glocal
All Business Ethics
Program Learning Skills Thinking Mindset
Disciplines
Goals

Course
Learning
Outcomes

1 X X X

2 X X

3 X X X

4 (LG503) X X

5 X X X

6 X X X
 Mapping to Course
Reading Session Topic
Learning Outcomes

Introduction to
 Overview of financial markets
Financial
CL01  Role of local and global financial intermediaries
markets and
 Role of local non-banking financial institutions
institutions

 Implications of change in interest rates

 Supply, demand and equilibrium perspective
Interest Rates CL02  Impact of term structure

Spreadsheet Exercise: Observing and Analyzing Trends

 Types of market efficiencies

Market  Efficient Market Hypothesis and its implications
CL01
Efficiency
Article Review: Fama and French

 Role of information asymmetry and moral hazard

 Market regulation to avoid financial crisis
Financial Crisis CL03  Remedies of financial crisis

Spreadsheet Exercise: Identifying Signs of Crises

 Tools available to central banks

 How strategies can differ in local/global context
CL04
Monetary Policy  Various goals of central banks
(LG503)
Guest Speaker Session: State Bank of Pakistan (Tentative)

 Stock markets and free-market mechanism

 Bond markets and credit rating agencies
Financial
CL06  Foreign Exchange markets and implications
Markets
Guest Speaker Session: Banking Operations (Tentative)

 Key technologies in FinTech

 Financial impact and additional risks
Financial
CL05  Blockchain backed cryptocurrencies
Technology
Case Study: Money in a Digital Age (BIS Report)

Text Book and Pre-Course Reading Material, Important Dates.

Recommended Text:
Frederic S. Mishkin, Stanley G. Eakins. Financial Markets and Institutions, 9th Edition (2018)

Secondary Texts:
Local and international financial news websites may be recommended to students.
Relevant articles on FinTech will be shared with students.
Dates
 Midterm Exam week: October 2022
 Final Exam week: December 2022

Prerequisite Skills and Knowledge to take this Course

FIN 201

Assessments and Grading Scheme

Assessment Due Date Remarks

Ongoing Awarded based on relevant contribution to

Participation
class discussion
Ongoing Take home activity for the last module of the
Activity
course
Presentation Ongoing Group presentation on the latest headlines
Quizzes Ongoing There will be a perfect zero if you miss the
(For LG503: Quiz 4) quiz
End of semester Marks based on (1) Linkage to modules (2)
Written Report
Creativity of topic (3) Subject matter
Midterm Exam Exam Weeks Includes modules covered
Final Exam Exam Weeks Includes all modules of the course
This course follows absolute grading.

Marks Distribution

Marks Total Marks

Marks Head Total Frequency Total Exempted
/Frequency /Head

Participation 25 0 0.4 10

Assignment 1 0 5 5

Presentation 1 0 5 5

Quizzes 16 2 ~0.7 10

Written Report 1 0 10 10

Midterm Exam 1 0 25 25

Final Exam 1 0 35 35

Total Marks 100

 Comments and/or Suggestions

• Since subsequent topics build on previously learned material, it is imperative that students
keep up with the material. In addition, you should ensure that lectures are understood
properly.
• A student who misses a class is responsible for obtaining any handouts and information on
course content, assignments, due dates, test dates, etc.
• Unethical behavior (cheating, plagiarism, proxy attendance) will be strictly penalized.

Technology & Innovation

• All course materials will be posted on LMS and grades will be posted on ERP. Students are
responsible to stay updated on these platforms.
• Students should bring the laptop for the spreadsheet sessions (this will be announced in
prior session or on course page).
• For discussions and course related queries, please join the course fb group.

Experiential Learning Exposure(s)

Students will get a chance to observe real-time data on interest rates, exchange rates, inflation etc.

Social Contribution / Impact

The course will emphasize on the concept of economic sustainability.

Academic Conduct

IBA policy

Attendance Policy

IBA policy

Plagiarism Policy

IBA policy

Withdrawal Policy

IBA policy