COURSE OUTLINE BMgt 4102

Course Code BMgt 4123

Course Title Financial Institutions and investment
Prerequisites
Program BA Degree in Business Management
Credit Hours 3
Academic Year
Instructor Name
Course The course deals with the theories of financial markets and institutions.
Description
Financial sector regulation. Financial markets and institutions in Ethiopia, and
more emphasis is given on money and capital markets.The course gives
students understanding of the essence, need for, and the roles played by
financial market and institutions.
Course Objective The course is designed:
 To enable students, know about the various aspects of financial
institutions,
 To create awareness about the operations of financial system
 To provide students with understanding of the fundamental knowledge for
those common and important investment strategies in financial market.
COURSE CONTENTS
CHAPTER 1-GENERAL INTRODUCTION (6 hours)
1.6. Introduction to Financial Institutions
1.7. Meaning and nature of financial institutions
1.8. Types of financial institutions
1.9. Functions of financial institutions
1.10. Role of financial institutions
CHAPTER 2- BANKING SYSTEM (9 hours)
2.3. Central Banking System
2.3.1. Evolution of Central Banking
2.3.2. Definition of a Central Bank
2.3.3. Central Banking Functions
2.3.4. Credit Control Methods
2.3.5. Monetary Policy & its Objectives
2.3.6. Regulation of the financial system
 2.3.7. Central banking system in Ethiopia
2.4. Commercial Banking system
2.4.1. Definition of commercial banking
2.4.2. Commercial banking services
2.4.3. Domestic and international banking operation
CHAPTER 3: BANKING AND THE MANAGEMENT OF FINANCIAL
INSTITUTIONS(8 hours)
3.3. The Bank Balance Sheet
3.4. General Principles of Bank Management
3.4.1. Liquidity Management and the Role of Reserves
3.4.2. Asset Management
3.4.3. Liability Management
3.4.4. Capital Adequacy Management
UNIT 4- ECONOMIC ANALYSIS OF BANKING REGULATION(6 Hours)
4.6. Asymmetric Information and Banking Regulation
4.7. Restrictions on Asset Holdings and Bank Capital Requirements
4.8. Assessment of Risk Management
4.9. Political Economy of the Savings and Loan Crisis
4.10. The Financial Institutions Reform
UNIT 5 - NONBANK FINANCE(3 Hours)
5.4. Insurance
5.5. Pension Funds
5.6. Mutual Funds and Internet
REFERENCES

Text:
 Fabozzi & Drake (2009). Capital Markets, Financial Management & Investment Management
John Wiley & Sons Inc., New Jersey
References:
 Miller, R, Lieroy, and David D.D. Van house (1993), Modern Money and Banking, 3 rd ed.
 McGraw Hill. Stilitz,
 Frederic S. Mishkin, (2004). The Economics of Money, Banking & Financial Markets 7th ed.
Boston: Addison Wesely.
 Grinblatt and Timan. (2002) Financial Markets and Corporate Strategy 2 nded. New Delhi: Tata
McGraw Hill.
 Mishkin, F. and Eakins, G, (2006). Financial Markets and Instruments, 5 thed, Addison Wesley
long man.
 Stilitz, (1994). The Role of the State in Financial Markets, World Bank Economic Review,
Proceeding
 John C. Hull, (2003) “Options, futures and other derivatives". 5thEdition
 Radcliffe (1997) "Investment: Concepts, Analysis and Strategies." 5thEdition, Addison –
WesleyEducational Publishers Inc.
 Reilly and Brown (1997) “Investment Analysis and Portfolio Management" 5th Edition.
 Robert A. Haugen (1998). Modern Investments theory. 4th Edition
 M.L.Jhingan,Money, Banking, International Trade & Public Finance, 6th Revised & Enlarged
Edition,Vrinda Publications (P) Ltd.
 Richard and Bill (2006), Corporate Finance & investment: Decision and Strategies, USA:
Prentice Hill.