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FINN 341
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Course Outline
Institutions.
FINN 341
Course outline
Financial Institutions and Markets. FINN 341 (3 Credit Hours) Program & Course Agenda
Days & Time Semester Instructor Office E mail Consulting hours Teaching Assistants Required Text Recommended Additional Readings, Books and Other Material Tuesday & Thursday 00:00-00:00 Class Room A-XX Fall-10 Starts August, 2010---Ends December, 2010 Mohammad Basharullah ACF WING Room 253 Telephones O42-35608080 & O300-401-3446 bashar@lums.edu.pk Alternate basharullah_2000@yahoo.com e-mail Monday to Thursday 14:00-16:00 OR Any other time and day: by appointments Hamza Gaffar Contact shall be communicated Financial Markets and Institutions. By Anthony Saunders & Marcia Millon Cornett 4th edition. Course Pack Material Pre requisites of the Course Methodology Financial Institutions Management Risk Management Approach By Anthony Saunders and Marcia Millon Cornett 6th edition. Money and Capital Market by Peter S. Rose Fifth Edition, The economics of Money, Banking and Financial Markets. Business school edition.(2nd Edition )by Fredric S. Mishkin) Financial Markets and Institutions, and Money by Fredric S. Mishkin 5th Edition Principles Of Money, Banking & Financial Markets By Lawrence S. Ritter, William L. Sliber and Gregory F. Udell, 10th or later Ed Foundations of financial markets and institutions (3 ed ) by FABOZZI Frank, MODIGLIANI Franco, JONES Frank, FERRI Michael Fabbozi Financial Institutions and Markets , 7th Edition by Jeff Madura State Bank of Pakistans Publications 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 Shall be made available through photocopier Principles of Finance; Micro & Macro Economics Primarily Lecture method based on assigned readings. Class discussions and presentations on assigned topics, various course relevant reports, articles and news on current developments affecting Financial Markets and Institutions Services of outside specialist speakers shall be arranged as well.
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Financial Press
Course Outline
Institutions.
FINN 341
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Course Outline
Institutions.
FINN 341
Final Comprehensive Examination 30% 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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FINN 341
Securities MarketsPart 2
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Institutions.
FINN 341
An Overview of Forex market and Interest rates,. International quotations conventions; Foreign exchange rates and transactions. Day 10.Other Financial Markets: Derivative Securities Markets
An overview of Derivative Securities Markets. Spot, Forwards, Futures; Fras and Swaps. Options; call put , Caps; floor and collars etc. Exotics and Some new arrivals on derivative markets
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Institutions.
FINN 341
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FINN 341
Day24. Managing Interest Rate Risk and Insolvency Risk on the Balance Sheet.
Interest rate and Insolvency risk measurement and management; Repricing and duration models. Insolvency risk Managements, Capital adequacy issues and Insolvency risk.
Day 25. Managing Risk Off the Balance Sheet with Derivative Securities.
Risk Managements with Forward and Futures contracts; Hedging with forward and future contracts. Option feature and its use as a risk management tools; Risk management with swaps; Interest rate swaps, currency swaps and credit swaps. Interest rate Risk Management with caps ,floors and collars.
Day 26. Managing Risk Off the Balance Sheet with Loan Sales and Securitization
A major cause of recent crisis in western financial system. To be discussed in class. Its impact on rethinking on Risk parameter, dynamics and overall Risk Landscape Managing Risk through Loan sales and Securitization. Moral Hazard issue in Loan sales and Securitization. Securitization in Pakistan Securitization of other assets; Role of securitization in crises.
Presentations
Day 27, Presentation Group 4, 5 & 6 Presentation Group 7, 8 & 9
Presentations
Day 28
FINAL EXAMINATION
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Institutions.
FINN 341
Regulatory challenges being faced and efforts to find a global regulatory Architecture
Rating in Pakistan (PACRA & JCRVIS) International rating of Pakistani Banking Sector
Foreign Exchange Market in Pakistan FDI , Flight of capital and Money Laundering And Hawala System Its impact on economy of Pakistan
Micro credit in Pakistan, Successes and Failures Grameen vs. Khushhali Bank Postal Saving and insurance in Japan
Presentation on Securitization In Pakistan Global impact of Sub Prime lending and its impact on Pakistan
Trends in commercial Banking; Consolidation and mergers in Banking Sectors in Pakistan Privatization of Banking sector Syndication in Pakistan The State and scope of Consumer Financing in Pakistan
Efficiencies and Inefficiencies in capital Markets of Pakistan. Forensic Report on Stock Market / CFS, Badla and Margin Financing Central Depository Scope of a other Custodian Banking Insiders trading Rules and controlling it
Specialized Financial Institution Role and Scope of SMEADA SME Banking Associations of non Banking Financial sector Housing Finance by HBFC and Commercial Banks in Pakistan, Scope of REITS Pension Funds and Employees Welfare Funds in Pakistan
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Institutions.
FINN 341
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