[FIN-424:

FINANCIAL INSTITUTIONS]
[Fall/2015]
[Room# UB 20202]
[ST 9:30 10:50]

Instructor:
Office Hours:

[S.M.Arifuzzaman] [UB20501, zmnarif@bracu.ac.bd]

Cell: 01716-43143]
[Look at my consultation hour planner]

Course Aims and Outcomes:

Aims
Financial Institutions are key players in financial markets because they
serve as intermediaries that determine the flow of funds. This course will
give an overview of the financial markets and the financial institutions that
serve those markets. It will provide a conceptual framework that can be
used to understand why market exists. Services offered by various financial
institutions will also be discussed briefly.

Specific Learning Objectives:

The objectives of this course are to:

Understand the role of financial market and how it facilitates

corporate finance

Identifying the factors determining interest rate and loanable fund

theory.

Understand the functions of money market, the money market

securities and institutions

Understand the functions of bond market, the bond market

securities and institutions

Understand the functions of stock market, the stock market

securities and institutions

Describe the commercial Bank operations

Describe the insurance and pension fund operations

Format and Procedures:

A comprehensive course divided into 24 sessions of 1 hours of each, interspersing formal
presentations from the course teacher with case studies, exercises and tutor-facilitated
discussions. The presentational style is fast, furious and fun.

Course Requirements:
1. Class attendance and participation policy: Exam questions will be based on the learning

from the classes and as such students are highly encouraged to attend the classes

2. Course readings:
(a) Required text: Financial Institutions Management A Risk Management
Approach, Anthony Sunders & Marcia Millon Cornett, Fifth Edition, McGraw-Hill
International Edition
(b) Case studies and readings will be provided

Grading Procedures:
Assessment criterion
Class
attendance
participation

Percentage
marks

&

5%

Quizzes ( 2 out of 3)

15%

Midterm test

20%

Project Work ( Group)

10%

Assignments/ Case Study

10%

Final Examination

40%

TENTATIVE COURSE TOPICS AND LECTURE PLAN

Topics

Week
01
02
03

04
05
06

07 &
08
09 &
10

Chapter

-Introduction of the course

-Why Are Financial Intermediaries Special

01

- The Financial Services Industry: Depository Institutions

02

- The Financial Services Industry: Insurance Companies

- The Financial Services Industry: Securities Firms and
Investment Banks
- Quiz #1
- The Financial Services Industry: Mutual Funds, Pension
Funds
- The Financial Services Industry: Finance Companies
- Risks of Financial Intermediation

03 & 04
05, 25
( Jeff
Madura)
06

MID TERM (15/10/2015)

- Interest Rate Risk I
- Determination of Interest Rates
- Term Structure of Interest Rates

08,
02 & 03
(
Jeff
Madura)

- Quiz #2
- Interest Rate Risk II

09
2

11

-Credit Risk: Individual Loan Risk

- Quiz#3

12

-Project Presentation
- Review for Final Exam

FINAL EXAM

11