COURSE OUTLINE GIFT BUSINESS SCHOOL

BNK-502 Financial Markets an Instit!ti"ns in #akistan S$rin% Se&ester' 20()

Faculty: Credit hours: Course level: Campus/Location/Instruction Mode: Course Instructor: Consultation hours: !re)re*uisite: Timin% This document ,as last updated: Saturday( Fe#ruary( -.(/0-1 GIFT Business School 3 Graduation GIFT University/ n Campus/In !erson "mina Boota amina#oota$%i&t'%mail$com () +one

BRIEF COURSE *ESCRI#TION The ma2or &ocus o& this course is in providin% the students an understandin% o& Financial Mar3ets 4 Institutions( their role in the development o& the economy o& the economy throu%h #usiness entities$ The course ,ill also %ive an idea a#out the current challen%es &aced #y the FM and institutions ,ith special contest to !a3istan mar3et$ COURSE OB+ECTI,ES To e*uip the students ,ith the #ac3 %round and current 3no,led%e related to Financial Mar3ets and Institutions to enhance their lia#ilities to analyse the investment opportunities availa#le in FM and strate%ies adopted #y the Institutions to e5plore those opportunities to produce the %ood economic results$ The scope o& the su#2ect ,ill #e #oarder in the sense o& understandin% o& the FMs in !a3istan and e&&ects on counties economies$

LE-RNING OUTCOMES "t the end o& this course( students ,ould #e e5pected to understand that ,ho the FM are per&ormin% their &unctions and participation o& other Financial Institutions and role o& national Bodies in !a3istan$ Upon success&ul completion o& this course student ,ill %ain &ollo,in%: Understandin% o& the Financial Mar3ets and institutions "ppreciation o& the Current issues and challen%es &aced FMs 4 Institutions$ "#ility to conduct independent research on FMs 6!rovide Component is ta3en8 ptional 7esearch "ssessment

CONTENTS

SESSIONS

TO#IC

RE-*INGS

#-RT

(. INTRO*UCTION / O,ER,IE0 OF
FIN-NCI-L M-RKETS

-)1

Why study financial markets & institutions Overview of Financial System: Why study financial markets? Introduction of financial markets i-e De t market! interest rate! the stock market! the forei"n e#chan"e market etc$ Why study Financial institutions? Banks & other financial institutions, central ank! (ourse *ack structure of financial system! conduct of monetary Chapter no 1,2 %olicy$ Mishkin Eakins Overview of financial system$ Functions & structure of financial markets! de t & e&uity market! %rimary & secondary market! money & ca%ital market! e#chan"e & O'( markets! Functions of financial intermediatries & )e"ulation of Financial system
#-RT

2. SECURITIES M-RKET
Course Pack Chapter no 9 Mishkin Eakins Chapter no 14 Fabozzi

+oney & (a%ital +arkets: Money +arket Structure! an overview of money and ca%ital market! *ur%ose! *artici%ants! Instruments of money market! com%arison of instruments! %rocess for issuin" new securities! re"ulation for %rimary market! underwritin" %rocess$

)-2

3-4

Secondary +arkets$ ,ond +arket: n o!er!ie" of bon# $arket, %ur%ose! %artici%ants! ty%es! %rocess of ond market! ond valuation$ Stock +arkets:

Course Pack Chapter no 1% +ishkin -akins Course Pack Chapter no 11 +ishkin -akins

(0-(2

&tock $arket o!er!ie" aroun# the "orl# an# in *akistan$ 'y%es of stock$ .ow it is sold$ (ommon stock valuation$ )ole of S-(* & its re"ulation re"ardin" stock markets$
MI*TERM

(1

+ort"a"e +arkets:
()-(2

brief intro#uction to the mort"a"e acked securities! asset acked securities$ / rief review of su %rime mort"a"e crises$ Derivatives Security +arkets: '!er!ie", For"ar# an# futures, 'ptions, (e)ulations of Future and O%tions +arkets! Swa%s! (a%s! Floors /3D (ollars! International /s%ects of Derivatives Securities +arkets$
#-RT 1. FIN-NCI-L INSTITUTIONS' COMMERCI-L B-NK / REGUL-TIONS

Course Pack Fabozzi Chapter no 01!02 Course Pack Chapter no 11 Mishkin Eakins

(3-(4

Why do financial institutions e#ist?

20-2(

Facts a out financial institutions! /symmetric Information! +oral .a4ards! /"ency issue! /"ency cost$ .ow moral ha4ards affect de t market$ (ommercial ,ankin"* +ntro#uction of co$$ercial bankin) & banks, the bank balance sheet, basics & principals of Bankin), off alance sheet activates and measurin" ank %erformance$ *rudential re"ulations: n o!er!ie" of pru#ential re)ulations- Purpose, brief intro#uction of Pru#ential re)ulations re)ar#in) co$$ercial bankin)Insurance (om%anies & +utual Funds: Cate)ories of +nsurance Co$panies, .ife an#

Course Pack (ha%ter no 52 +ishkin -akins

Course Pack Chapter no 1, Mishkin Eakins

22-21

Course Pack

2)-25

Course Pack

22-23

Property0Causality +nsurance Co$panies 1lobal +ssues, &ize, &tructure an# Co$position of Mutual Fun#s an# in#ustry as a "hole, Balance &heet an# recent tren#s in $utual fun#s, (e)ulations an# 1lobal issues in re)ar# to Mutual Fun#s*ro6ect %resentation:
25-10

Course Pack

1roup no 1-----on"ar#s

!lease note: This is a proposed schedule only and may #e varied at the discretion o& the Course Convenor to %ive a %reater or lesser de%ree o& emphasis to particular topics$

TE6TS -N* SU##ORTING M-TERI-LS #rescri7e Te8t. !a3istan &inancial sector assessment report issued state #an3 o& !a3istan research department$ Financial Institutions and Mar3ets ./e Frederic S$ Mish3in Stanley G$ 9a3ins Re9erence Te8ts. Foundation o& Financial Mar3ets and Institutions 3/e Fran3 :$ Fa#o;;i( Franco Modi%ilani and Michael G$Ferri -SSESSMENT Ite& -$ /$ 3$ 1$ .$ -ssess&ent Task "ssi%nments Class !articipation >ui;;es 618 Mid term e5amination Final 95amination -. to /. mins$ - hour -. mins$ 3 hours Len%t: 0ei%:tin% -.< -0< -.< /0< 10< =urin% the ,hole semester ?arious @ee3s in Class Mid o& the semester =urin% Formal 95amination !eriod *!e *a; an Ti&e