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LAHORE GARRISON UNIVERSITY

Main Campus, Phase VI, Sector C, DHA, Lahore

DEPARTMENT OF BUSINESS MANAGEMENT


Syllabus Breakdown
Subject Title:
MBA
Teacher:

Financial Institutions
Mazhar Farid Chishti

Class:
Credit Hour:

COURSE OBJECTIVES
This course develops the understanding of structure and functions of financial
institutions. In economics financial markets channel funds from lenders to
borrowers. It explains the mechanism that allows people to easily buy and sell
(trade) financial securities and commodities and other fungible items.

Time period
Week One

Week Two
Week Three

Week Four

Week Five

Week Six

Week Seven

Week Eight

Week Nine

Topics to be covered
The Financial System: Introduction and basic concepts
of Financial System, Function of Financial System and
Financial Instruments.
Globalization of Financial Markets: Financial Institutions
and its classification
The Banking Sector: Introduction and main activities of
banking. Non-banking Financial Institutions, Contractual
Saving Institutions.
Finance Companies: Money Market Corporations, Nonbank Depository Institutions, Managed Funds. Public
unit trust.
The Share Market and Corporations: The Nature of
Corporations, The Share Market and its types, the
development of Share Market.
Growth in Debt Market: factors affecting the supply of
Credit, factors affecting the demand of debt, interaction
between supply and demand, short-term debt.
Trade Credit: intercompany loans, bank overdraft, Fully
drawn advances (FDA), Commercial bills, Promissory
notes, Negotiable Certificate of deposits.
Inventory Notes: Medium to long-term debt, Term Loans
and Mortgage Finance. Debentures and Unsecured
loans and subordinate debt. Leasing and types of
Lease. Project and Structured Finance.
Government Debt Market and Monetary Policy: impact
on the system liquidity. Exchange settlement accounts.

Week Ten

Week
Week
Week
Week
Week

Eleven
Twelve
Thirteen
Fourteen
Fifteen

The Foreign Exchange Market Participants and


Mechanics: market Participants, the operation of FX
Market, Spot Market Quotations.
Foreign exchange risk identification and management.
Measuring transaction exposure
Risk management:
Market base hedging techniques
Internal hedging techniques

Recommended Books:
1- Financial Markets and Institutions (Fifth Edition) by Frederic S.
Mishkin, Stanely G. Eakins
2- Financial Institutions, Instruments and Markets (Third Edition) by
Christopher Viney
Grading Policy
Grades will be awrded as per the LGU grading Policy which is given below;
Mid-term
25%
Final-term
50%
Sessional Marks 25%