Course Details
Course Information Package
Course Unit Title | FINANCIAL MARKETS AND INSTITUTIONS | ||||||
Course Unit Code | AFIN305 | ||||||
Course Unit Details | |||||||
Number of ECTS credits allocated | 5 | ||||||
Learning Outcomes of the course unit | By the end of the course, the students should be able to:
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Mode of Delivery | Face-to-face | ||||||
Prerequisites | AFIN101,AFIN102 | Co-requisites | NONE | ||||
Recommended optional program components | NONE | ||||||
Course Contents | Introduction to financial markets and institutions and the economic environment:
Identify the role of financial intermediaries. Examine the role of commercial banks as providers of funds. Examine international money and capital markets and outline their operations.
Outline basic characteristics of depository Institutions, securities firms and investment banks
Provide and overview of the risks of financial institutions
Explain the main macro-economic policy targets. Evaluate the role of fiscal and exchange rate policy.
Identify the main tools of monetary policy. Analyse the factors that influence inflation including interest rates. Evaluate the role of monetary policy
Introduction to interest rate uncertainty impact on financial institutions performance:
Understand the interest rate sensitive assets and liabilities of financial institutions and the risks involved
Use the reprising and maturity model in order to understand the impact of interest rates on the asset and liabilities of the financial institution
Duration and immunization strategies for financial institutions:
Explain the concept of duration
Calculate duration for different types of fixed income securities
Explain the features of duration as connected with maturity, yield and coupon interest
Use duration measures in order to apply immunization strategies that reduce the impact of interest rate uncertainty
The regulatory environment based on Outline the basic characteristics and requirements of Explain measurement methods for market risk
Explain Risk Metrics and the simulation approach
Explain Explain the concept of credit risk based on the type of loans (commercial, industrial, real estate and other)
Explain some basic models for the calculation of default risk
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Recommended and/or required reading: | |||||||
Textbooks |
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References |
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Planned learning activities and teaching methods | The taught part course is delivered to the students by means of lecturers, conducted with the help of computer presentations and the use of the board. Lecture notes and other course material like spreadsheet examples are available to students through the web | ||||||
Assessment methods and criteria |
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Language of instruction | English | ||||||
Work placement(s) | NO |