FIN 301 : Financial Institutions and Markets

School of Business Studies, IBA Karachi

Program: BBA
Department Offering: Finance
Class ERP Number: 7383 - 7433
Faculty: Dr. Azima Khan

Class details

Class Timing and Room 10:00 am – 11.15 am; 11.30 am – 12.45 pm @ MAS-2

Session Days Tuesday & Thursday

Credit Hours: 3 Credit Hours

Email azimakhan@iba.edu.pk
Contact # 021 38104701 Extension:

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.

BSAF/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 learn indispensable relationships observable in global financial markets (mapped to PLO
 502).
2. Students will be able to comprehend and analyze developments in local financial systems and investing
cultures (mapped to PLO 501).
3. Students will be able to comprehend developments in global financial systems and investing cultures
(mapped to PLO 502).
4. Students will be able to grasp the implications of financial technology in global context (mapped to
PLO 502).
5. Students will be able to understand the importance of ethical behavior in financial markets (mapped to
PLO 401).

AOL Assessment Mapping

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

Course
Learning
Outcomes

1 PLO502

2 PLO 501

3 PLO 502

4 PLO 502

5 PLO 401

Mapping to Course
Reading Session Topic
Learning Outcomes

 Overview of financial markets

 Role of local and global financial intermediaries
Introduction CL01  Role of local non-banking financial institutions

Chapter 1: Why Study Financial Markets and Institutions?

Chapter 2: Overview of the Financial System
  Implications of change in interest rates
 Supply, demand and equilibrium perspective
 Impact of term structure

Interest Rates CL01 Chapter 3: What Do Interest Rates Mean and What Is Their Role
in Valuation?
Chapter 4: Why Do Interest Rates Change?
Chapter 5: How Do Risk and Term Structure Affect Interest
Rates?

 Types of market efficiencies

 Efficient Market Hypothesis
Market Efficiency CL01  Implications of EMH on financial markets

Chapter 6: Are Financial Markets Efficient?

 Role of information asymmetry and moral hazard

 Market regulation to avoid financial crisis
Financial Crisis
CL02  Importance of ethics in finance
CL05
Chapter 8: Why Do Financial Crises Occur and Why Are They So
Damaging to the Economy?

 Tools available to central banks

 How strategies can differ in local/global context
CL02
Monetary Policy
CL03  Various goals of central banks

Chapter 10: Conduct of Monetary Policy

 The free-market mechanism

 Bond, stock and foreign exchange markets
CL02  Cultural norms in Pakistan
Financial Markets
CL03
Chapter 12: The Bond Market (brief overview only)
Chapter 13: The Stock Market (brief overview only)
Chapter 15: The Foreign Exchange Market

 Key technologies in FinTech

 Financial impact and additional risks
Financial
CL04  Blockchain backed cryptocurrencies
Technology
Lecture 1: FinTech and Relevant Risks
Lecture 2: Blockchain and Decentralized Finance

 Stakeholder vs. shareholder theory perspective

 ESG, SRI and their societal impact
Sustainability CL05  Financial instruments focusing sustainability

Lecture 1: Introduction to stakeholder theory

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 to be shared with students.

Dates
 Midterm Exam week: -
 Final Exam week: -

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 class
Participation
discussion
Ongoing Take home activity for the last module of the
Activity
course
Quizzes Ongoing There will be a perfect zero if you miss the quiz
End of semester Marks allocated based on rubric shared with
Written Report
students
Midterm Exam Exam Weeks Includes modules covered
Final Exam Exam Weeks Includes all modules of the course
This course follows absolute grading.

Marks Distribution

Total Marks
Marks Head Total Frequency Total Exempted Marks /Frequency
/Head

Participation Y 0 0.2/y 10

Quizzes 6 2 2.5 10

Written Report 1 0 15 20

Midterm Exam 1 0 20 20

Final Exam 1 0 40 40

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

A maximum of 4 absences are allowed. Each absence in excess will lead to a drop in one letter grade. For example
A to A-, A- to B+ and so on.

Plagiarism Policy

IBA policy

Withdrawal Policy

IBA policy