COURSE INFORMATION
Course Title: FINANCIAL INSTITUTIONS AND MARKETS
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
BAF 321 B 5 4 0 0 4 5
Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature) NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours: Erjon Gjoçi , - Tuesdays 9am - 11am or email for appointments
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours: Nertil Mera
Teaching Assistant(s) and Office Hours: NA
Language: English
Compulsory/Elective: Compulsory
Classroom and Meeting Time: Monday > E214 at 13:30 - 17:15 & Tuesdays > E214 at 14:30 - 16:15
Course Description: BAF 321- Financial Institutions and Markets: This course is about the financial institutions, markets, and instruments that compose today's global financial markets and the risks associated with them. Students will gain a thorough understanding of how financial institutions are managed, how funds are raised, how financial instruments are priced, how risks are managed, and why financial institutions and markets are prone to failure.
Course Objectives: This course is intended to help you understand the role of financial institutions and markets play in the business environment that you will face in the future. It also helps you to develop a series of applications of principles from finance and economics that explore the connection between financial markets, financial institutions and the economy. On the financial markets side, we will learn the term structure of interest rates, stocks, principals of derivatives, and currencies. On the institutions side, we will learn commercial banks, investment banks, insurance companies, mutual funds, the Federal Reserve Systems and their role of in the economy
COURSE OUTLINE
Week Topics
1 Introduction & Syllabus
2 Ch. 1 - Why study financial markets and Institutions & Ch. 2 - Overview of the financial system
3 Ch. 3 - Interest Rates & Ch. 4 - Why do interest rates change
4 Ch. 5 - Risk and Term Structure & Ch. 6 - Are financial markets efficient
5 Ch. 7 - Financial Institutions & Ch. 8 - Financial Crises
6 Ch. 11 - Money Market & Ch. 12. - Bond Market
7 Ch. 13 - Stock Market & Review
8 Midterm
9 Review & Ch. 9 - Central Bank
10 Ch. 10 - Conduct of monetary policy
11 Ch. 20 - The Mutual Fund Industry
12 Ch. 21 - Insurance & Pension Funds
13 Ch. 22 - Investment Banking, Broker & Dealers
14 Presentations and Course Review
Prerequisite(s):
Textbook: Financial Markets and Institutions ~ Mishkin & Eakins
Other References:
Laboratory Work:
Computer Usage:
Others: No
COURSE LEARNING OUTCOMES
1 discuss theories that underneath the term structure of interest rates
2 discuss efficient market hypothesis related to stock pricing
3 understand a stylized bank’s balance sheet and discuss how risks are managed in banks
4 discuss facts of the insurance business, mutual funds and investment banks
5 grasp the basic features of options and futures and understand how financial institutions use them for risk management
6 discuss the main functions of the Fed and tools they use to affect the economy
7 know how currency value is determined the short run and long run
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
Bachelor in Economics (3 years) Program
1 Students define the fundamental problems of economics 5
2 Students describe key economic theories 5
3 Students critically discuss current developments in economics 5
4 Students appropriately use software for data analysis 5
5 Students critically contextualize the selection of an economic problem for research within scholarly literature and theory on the topic 5
6 Students apply appropriate analytical methods to address economic problems 5
7 Students use effective communication skills in a variety of academic and professional contexts 5
8 Students effectively contribute to group work 5
9 Students conduct independent research under academic supervision 5
10 Students uphold ethical values in data collection, interpretation, and dissemination 5
11 Students critically engage with interdisciplinary innovations in social sciences 5
12 Student explain how their research has a broader social benefit 5
COURSE EVALUATION METHOD
Method Quantity Percentage
Homework
2
7.5
Midterm Exam(s)
1
25
Project
1
25
Final Exam
1
25
Attendance
10
Total Percent: 100%
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
Activities Quantity Duration(Hours) Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours) 16 3 48
Hours for off-the-classroom study (Pre-study, practice) 16 1 16
Mid-terms 1 20 20
Assignments 2 8 16
Final examination 1 25 25
Other 0
Total Work Load:
125
Total Work Load/25(h):
5
ECTS Credit of the Course:
5