Institute Of Business Administration

Allama I.I. Kazi Campus, Jamshoro

University Of Sindh
Phone Numbers: +92-22-9213200, +92-22-9213181-90 Ext. 2009, Web Site:http//cba.usindh.edu.pk/Email:dir_iba@cba.usindh.edu.pk

Curriculum of BBA (Hons) P-I

Course Details
Course Name: Financial Institutions and Markets
Course Code: 508
Credit Hours: 3 Credit Hours (per week)

Course Description/Objective
This course will cover the overview and procedural knowledge of financial markets, institutions,
mechanisms and instruments. The course will emphasize on the nature and operational variety among
various financial institutions and markets in order to develop financial insights. These financial
institutions and markets constitute banking sector, non-banking financial institutions, debt & equity
market, foreign exchange market and derivative market.

Learning Outcomes
After the completion of this course students will be able to:
 Have clear understanding about financial markets and institutions
 Understand interest rates and its impact in the economy
 Know the types of major financial markets
 Understand use of Financial instruments
 Understand Role of regulators in financial markets

Course Contents (Plan)

Introduction, Functions of the financial system, Financial
Week Overview of the Financial Instruments, Financial Markets, Globalization, Financial
01 System Institutions

Introduction, Main activities of banking, Sources and Uses of

Week The Banking Industry funds, Off-balance-sheet business, Prudential Regulations
02
Introduction, Investment & Merchant banks, Life & General
Week Non-bank Institutions Insurance, Superannuation funds, Finance companies,
03 Building societies, Cooperatives, Export Finance

Introduction, Nature of the corporation, Stock exchange,

Week Equity Markets Share markets
04
Week Share Market and Introduction, Investment Decision: Capital Budgeting,
05 Corporations Financing Decision: Equity, Debt & Risk, IPO, Listed
 Businesses, Alternative Equity Funding

Introduction, Investment, Buying & Selling, Taxation, Fin.

Week Share Market and Investors Performance Indicators, Pricing, Stock Market Indices
06
Introduction, Trade Credit, Bank OD, Commercial Bills,
Week Debt Markets: Discount Securities, Promissory Notes, Negotiable Deposit,
07 Short-Term Debt Advance Cash facility, Inventory Loans, Account receivables

Week Mid Term

08
Introduction, Fully-drawn Advances, Mortgage Finance,
Week Debentures, Unsecured debt, Fixed interest securities,
Medium to Long-Term Debt
09 Leasing and its types, Direct Credit

Government Debt and

Introduction, Govt. borrowing requirement, Government
Week securities, Monetary Policy, Payment System
Monetary Policy
10
Introduction, Macroeconomic context of interest rate, interest
Week Interest Rate Determination rate of loanable funds, Interest rate term, Risk structure
11
Introduction, Forex Market Players, Operation of FX market,
Foreign Exchange Market Spot and Forward transactions, Spot and Forward quotations
Week12
Introduction, Equilibrium exchange rate, Factors affecting
exchange rate, Sensitivity of exchange rate, Economic
Week13 Valuing Currency
variables, Purchasing power parity

Introduction, General principles of hedging, Futures

Derivative Market: Futures transaction, Futures instruments, Futures participants,
Week14
Contracts Hedging & risk management, Forward rate agreements

Week15 Project Presentations

Recommended Text Book

Financial Markets & Institutions, Frederic S. Mishkin and Stanley G. Eakins, (Latest) Edition,
Reference Book
Financial Institutions and Markets, Jeff Madura , latest Edition,
Financial Market & Institutions, LM Bhole, latest Edition,