Documente Academic
Documente Profesional
Documente Cultură
Course name
Course code
ABA 318
Semester
May-August 2016
Lecturer/email address
Felix Weru
Time
8.30-11:30PM
fweru@iat.ac.ke
Monday
A. COURSE OBJECTIVE
To give students a fundamental and practical understanding of the workings of the financial
system.
B. COURSE CONTENT
Essence of financial institutions; role of financial markets in resource allocation: lending,
payments and risk-bearing; financial system: its operation, efficiency, stability and
government intervention; determination of market interest rates; portfolio theory ;financial
institutions: central bank, commercial bank, and other non-banking institutions, merchant
banks and hire purchase companies; special financial institutions in Kenya: Industrial and
Commercial Development Corporation, Industrial Development Bank, Development
Finance Company of Kenya, Kenya Industrial Estates; Markets for funds: capital markets,
money markets, security markets, capital market development authority; the stock exchange:
terminologies, practices and functions, computation and interpretation of the stock index.
Week
Week 1-3
Subject area
Course Outline
& Introduction
Week 4
Week 5-6
Discussion
topics
- Essence of financial
institutions
- Role of financial markets in
resource allocation: lending,
payments and risk-bearing;
- Financial system: its
operation, efficiency, stability
and government intervention;
Assignments/Re
ading guide
Interest Rate
Markets
- determination of market
interest rates; portfolio theory
Foreign
Exchange
Markets
The Euro
Markets
Equity Markets
Stock Exchange
Discussion
Week 10
Week 11
CAT 1
Market for
Derivatives,
Futures,
Forwards,
Options,
Warrants and
Swaps
Regulation of
Financial
Markets
Financial
Institutions
Types of derivatives
Future Contracts
Forward deals
-Options and Warrants
Types of Swaps
-Role of government in
Money and Capital Markets
-Role of Central Bank of
Kenya in regulating
commercial banks
-Role of Capital Markets
Authority in regulating
Capital Markets
- central bank, commercial
bank, and other non-banking
institutions, merchant banks
and hire purchase companies
- Development Finance
Company of Kenya
-Industrial and Commercial
Development Corporation
(ICDC)
-Kenya Industrial Estates
-The Industrial Development
Handing in of Term
Paper.