*Course Description* 

This course provides a comprehensive understanding of the banking and financial systems, including financial markets, institutions, regulations, and instruments. Students will explore core concepts such as risk management, financial intermediation, monetary policy, and the role of technology in modern finance. Case studies and real-world applications will bridge theory and practice.

 

 

*Learning Outcomes* 

By the end of the course, students will: 

1. Understand the structure and functions of financial systems and banking institutions. 

2. Analyse financial statements and evaluate creditworthiness. 

3. Apply risk management techniques (e.g., liquidity, credit, interest rate risk). 

4. Explain regulatory frameworks (e.g., Basel III, Dodd-Frank Act). 

5. Evaluate financial instruments (e.g., bonds, derivatives, equities). 

6. Discuss the impact of fintech, blockchain, and AI on banking. 

7. Address ethical and governance challenges in finance. 

 

*Course Modules* 

*1. Introduction to Banking and Financial Systems* 

- Role of financial intermediaries 

- Overview of central banking and monetary policy 

- Financial markets: Money markets vs. capital markets 

 

*2. Financial Statements and Analysis* 

- Balance sheets, income statements, and cash flow analysis 

- Key ratios: Liquidity, profitability, solvency 

- Credit risk assessment and loan pricing 

 

*3. Risk Management in Banking* 

- Types of risks: Credit, liquidity, market, operational 

- Tools: Stress testing, Value-at-Risk (VaR), hedging 

- Basel Accords and capital adequacy 

 

*4. Banking Operations* 

- Deposit and lending functions 

- Payment systems (e.g., SWIFT, RTGS) 

- Asset-liability management (ALM) 

 

*5. Financial Markets and Instruments* 

- Debt instruments (bonds, T-bills) 

- Equity markets and IPOs 

- Derivatives: Futures, options, swaps 

 

*6. Regulation and Compliance* 

- Role of regulators (e.g., Fed, ECB, RBI) 

- Anti-money laundering (AML) and KYC norms 

- Impact of financial crises (2008 crisis case study) 

 

*7. International Banking* 

- Foreign exchange markets 

- Cross-border lending and trade finance 

- Challenges in global regulatory harmonization 

 

*8. Ethics and Corporate Governance* 

- Ethical dilemmas in banking 

- ESG (Environmental, Social, Governance) investing 

- Corporate governance frameworks 

 

*9. Emerging Trends* 

- Fintech innovations: Digital wallets, blockchain, DeFi 

- AI and machine learning in risk assessment 

- Sustainable finance and green bonds 

 

*Assessment Methods* 

1. *Exams* (40%) 

   - Midterm (20%) 

   - Final Exam (20%) 

2. *Assignments* (30%) 

   - Case studies (e.g., Lehman Brothers collapse) 

   - Financial statement analysis project 

3. *Quizzes/Participation* (10%) 

4. *Final Project* (20%) 

   - Research paper/presentation on a trending topic (e.g., CBDCs, crypto regulation). 

 

*Required Textbooks* 

1. The Economics of Money, Banking, and Financial Markets by Frederic S. Mishkin. 

2. Bank Management & Financial Services by Peter S. Rose and Sylvia C. Hudgins. 

3. Principles of Corporate Finance by Richard Brealey, Stewart Myers, and Franklin Allen. 

 

*Recommended Resources* 

- Journals: Journal of Banking & Finance, Financial Times 

- Reports: BIS Annual Report, IMF Working Papers 

- Online: Investopedia, Coursera courses on fintech 

 

*Additional Considerations* 

- *Guest Lectures*: Industry experts from banks/fintech firms. 

- *Software Tools*: Excel for financial modelling, Bloomberg Terminal (if available). 

- *Case Studies*: Analyse real-world scenarios (e.g., SVB collapse, LIBOR scandal). 

 

*Policies* 

- Attendance: Mandatory for 80% of sessions. 

- Late Submissions: 10% penalty per day. 

- Academic Integrity: Zero tolerance for plagiarism.