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Course outline
Money, Banking & Financial Institution
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Course Outline Introduction to Finance.
Financial Press Dawn, Business Section Economic and Business Review); Business
Recorder; Pakistan Economist etc.
WSJ, FT or any other local & International newspaper or Journals; Various
publications of State Bank Of Pakistan
Course Pack Shall be made available through photocopier
Material
Students Laser 50 Pages
Printing Quota
Pre requisites of Principles of Finance 1, ACF 261/ECON 261: Intermediate Finance. Micro
the Course and Macro Economics
Course Objectives The course is designed to equip students with knowledge of a financial system and its
Expected regulatory framework and environments in Pakistan, and as it exists in a developed
outcome & Policy economy. On completion of the course the students shall be able to demonstrate an
understanding of the subject matter and financial environments in Pakistan.
The course policy envisages positive learning environments in the class. A productive
participation conditional on attendance shall be rewarded judicially. Tardiness and casual
attitude shall be strongly discouraged. Zero tolerance for plagiarism and other unfair means
of securing credits.
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Course Outline Introduction to Finance.
(Each group shall select a Financial Institution or a topic of interest for the detailed analysis. Group members shall be
asked to remain abreast with the developments taking place in the marketplace, through financial press. The impact of
current developments taking place, which are pertinent to their selection of study, shall be monitored and compiled by
the group. The group is expected to apprise the class with their observations through class participation)
Article presentation 10%
A 10 minutes Article Presentation by a group of two, on one of the topics given or
suggested by the short group and approved by the instructor. The presentation should be
made in a regular session.
Final Comprehensive Examination 30%
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Course Outline Introduction to Finance.
The examination could be mix of MCQ short exercise and short explanations. Students may
also expect a question or two from the assigned report or a case or a situation analysis.
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Course Outline Introduction to Finance.
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Course Outline Introduction to Finance.
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Course Outline Introduction to Finance.
Markets
Capital Markets (Stock Markets) & Other Financial Markets A brief study of Stock Market in
Stock Markets & Other Markets (Foreign Exchange Markets & Derivative Securities Pakistan; Inefficiencies in Stock
Markets) Market
An Overview of the stock markets around the world and in Pakistan. Some issues
pertaining to Stock Market in Pakistan. An Overview of Forex market and Interest
rates,. International quotations conventions; Foreign exchange rates and
transactions. An overview of Derivative securities and markets; Forwards futures;
Options; Swaps and Caps floor and collars etc.
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Course Outline Introduction to Finance.
Chapter 11,12 and 13 Week 6, Day 11, Tuesday, October 2 , 2007 Recent Developments and Role of
Regulation of depository institutions. Investment Banking in Pakistan.
Regulatory environments of commercial banks in USA and i Pakistan; Pakistan
banking council and scope of Pakistan banking association. Some Important Pension Funds and Employees
Regulations Welfare Fund
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Course Outline Introduction to Finance.
Week 8, Day 15, Tuesday,, October 16, 2007 Presentation Group 1, 2 & 3
Presentations
Week 8, Day 16, Thursday, October 18, 2007 Presentation Group 4, 5 & 6
Group
Week 9, Day 15, Tuesday, October 23, 2007 Presentation Group 7, 8 & 9
Week 9, Day 16 , Thursday, October 25, 2007 Presentation Group 10, 11& 12
Types of Risks Incurred by Financial Institutions Managing Risk on the Balance Sheet I: Credit
Risk
Why Financial Institutions need to manage a risk; A brief discussion on different types of risks.
Chapter overview; Credit analysis; Lending to Small and Medium size business.
Week 9, Day 18, Thursday, November 1, 2007
Managing Risk on the Balance Sheet II & III : Interest Rate and Insolvency Risk
Liquidity risk as it exists in different Institution; Interest rate risk measurement and management; Repricing and duration
models.
Insolvency risk Managements
Week 10, Day 19 Tuesday, November, 6, 2007
Managing Risk with Derivative Securities.
Risk Managements with Forward and Futures contracts; Option feature and its use as a risk management tools; Swaps;
interest rate swaps, currency swaps and credit swaps;
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Course Outline Introduction to Finance.
FINAL EXAMINATION
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Course Outline Introduction to Finance.
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Course Outline Introduction to Finance.
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