FIN 301 : Financial Institutions and Markets

School of Business Studies, IBA Karachi

Program: BBA/ACF
Department Offering: Finance
Class ERP Number: 5083; 5087; 5089
Faculty: Ms. Tehseen Valjee

Class details

8:30 a.m. to 9:45 a.m., Main Campus

Class Timing and Room 10.00 a.m. to 11:15 a.m., Main Campus
11:30 am to 12:45 pm Main Campus

Session Days Monday & Wednesdays

Credit Hours: 3 Credit Hours

Email tmvaljee@iba.edu.pk
Contact # 0300-8262744

Course Description

The course is designed for undergraduate students, with an objective to familiarize them with financial system’s
role in an economy, from a global as well as local perspective. Theory covered may introduce students as to how
financial markets (e.g., stock, bond, and foreign exchange markets) and financial intermediaries (i.e., Central &
commercial banks) perform and how they supplement each other. In addition, it covers the latest developments in
financial technology with special focus on how decentralized technologies have the potential to disrupt
conventional financial services. The course also helps students comprehend news emanating from global & local
financial markets and its impact on businesses and households.

BSAF Program Learning Goals

1. Communication Skills
Students will become effective speakers, listeners, writers and team members

2. Knowledge of All Business Disciplines

Students will gain a broad based understanding of a range of business disciplines

3. Critical Thinking
Students will develop the ability to classify, analyze and evaluate the available data using appropriate techniques
for effective decision making.

4. Ethics
Students will have an awareness and understanding of ethical issues.

5. Glocal Mindset
Students will develop a focus on global connections with local contexts through awareness of diversity across
cultures and markets.
 Course Learning Outcomes (CLOs)

1. Students will understand the terminology and basic concepts underlying financial market mechanism.
2. Students will appreciate the role of interest rates in economic welfare of society.
3. Students will learn indispensable relationships which signal financial crises.
4. Students should be able to differentiate between local and global business practices and cultures.
(LG503)
5. Students will recognize the potential of financial technology in local and global context.
6. Students will develop a habit of following local news and its implication on a global context.

AOL Assessment Mapping

PLG mapped: The course is mapped with BSAF program learning goal LG5 and Program learning objective
LG503
Assessment Tool: Quiz (Quiz 4)

Teaching and Learning Methodology

1. Students are required to read the topic prior to the lecture.

2. The course assignment is a written report on a topic of interest.
3. Lecture presentations will be uploaded on Learning Management System (LMS).
4. Unannounced quizzes will be taken to gauge student progress.

Course Learning Outcomes mapped to Program Learning Outcomes

Knowledge of
Communication Critical Glocal
All Business Ethics
Program Learning Skills Thinking Mindset
Disciplines
Goals

Course
Learning
Outcomes

1 X X X

2 X X

3 X X X

4 (LG503) X X

5 X X X

6 X X X

Mapping to Course
Reading Session Topic
Learning Outcomes
Introduction to  Overview of financial markets
Financial markets CL01  Role of local and global financial intermediaries
and institutions  Role of local non-banking financial institutions

 Implications of change in interest rates

 Supply, demand and equilibrium perspective
Interest Rates CL02
 Impact of term structure
Bond analysis PV Duration YTM

 Types of market efficiencies

 Efficient Market Hypothesis and its implications
Market Efficiency CL01
Global markets review

 Role of information asymmetry and moral hazard

 Market regulation to avoid financial crisis
Financial Crisis CL03  Remedies of financial crisis

Emphasis on 2008 crises and implications

 Tools available to central banks

 How strategies can differ in local/global context
CL04
Monetary Policy
(LG503)  Various goals of central banks

Guest Speaker Session: State Bank of Pakistan

 Stock markets and free-market mechanism

 Bond markets and credit rating agencies
Financial Markets CL06  Foreign Exchange markets and implications

Guest Speaker Session: Commercial Bank Operations

 Key technologies in FinTech

 Financial impact and additional risks
Financial
Technology
CL05  Blockchain backed cryptocurrencies

Project: Major Exchanges and Mutual Funds

Text Book and Pre-Course Reading Material, Important Dates.

Recommended Text:
Frederic S. Mishkin, Stanley G. Eakins. Financial Markets and Institutions, 9th Edition (2018)

Secondary Texts:
Local and international financial news websites may be recommended to students.
Relevant articles on FinTech will be shared with students.

Dates
 First exam week: September, 2021
 Second exam week: November, 2021
  Third exam week: December, 2021

Prerequisite Skills and Knowledge to take this Course

FIN 201

Assessments and Grading Scheme

Assessment Due Date Remarks

Assignments Ongoing Both assignments will be done in groups

Ongoing The quizzes may be in advance or from the
Quizzes
previous topic. There will be a perfect zero if you
(For LG503: Quiz 4)
miss the quiz
Hourly Exam Paper Exam Weeks There are three exams of equal weightage
This course follows absolute grading.

Marks Distribution

Total Marks
Marks Head Total Frequency Total Exempted Marks /Frequency
/Head

Assignments 2 0 10 20

Quizzes 6 1 2.5 20

Hourly Exam Papers 3 0 15/15/20 50

Class Part/ project 10 0 1 10

Total Marks 100

Comments and/or Suggestions

• Since subsequent topics build on previously learned material, it is imperative that students keep up with
the material. In addition, you should ensure that lectures are understood properly.
• A student who misses a class is responsible for obtaining any handouts and information on course
content, assignments, due dates, test dates, etc.
• Unethical behavior (cheating, plagiarism, proxy attendance) will be strictly penalized.

Technology & Innovation

• All course materials will be posted on LMS and grades will be posted on ERP. Students are responsible
to stay updated on these platforms.
• Students should bring the laptop for the spreadsheet sessions (this will be announced in prior session or
on course page).
• For discussions and course related queries, please join the course fb group.

Experiential Learning Exposure(s)

Students will get a chance to observe real-time data on interest rates, exchange rates, inflation etc.

Social Contribution / Impact

The course will emphasize on the concept of economic sustainability.

Academic Conduct

IBA policy

Attendance Policy

IBA policy

Plagiarism Policy

IBA policy

Withdrawal Policy

IBA policy