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B. Stat. – 204
Financial Institutions and Markets
Full marks – 50
(Examination 40, Tutorial/Terminal 7.5, and Attendance 2.5)
Number of Lectures – Minimum 30
(Duration of Examination: 3 Hours)

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Aim and Objectives the Course
» The objectives of the course are to introduce students to a comprehensive analysis of the business of financial intermediaries and the art of central banking as well as the role of insurers in the economic development process of the country.
 » The course is designed to make the students understand functioning of financial and insurance markets as well as sources and uses of monetary and financial statistics.
 » It provides a solid background in the fundamental concepts of theoretical aspects of monetary and insurance data and understanding of uses of such data and, together with the learning of courses in econometrics and actuarial science, enable the students for developing and testing of econometric and actuarial models.
Learning Outcomes
On completion of the course, the students will be able to
 » analyze the business of financial intermediaries
 » analyze monetary and insurance data
 » appreciate the role of central banking
 » have better understanding of the functions of commercial banks
 » gain insight into the structure and functioning of financial markets
 » have concepts of the role of insurance industry

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Course Contents
Central Banking: The Role of central bank with specific discussion on the role of Bangladesh Bank, Credit control measures: CRR, SLR, AD Ratio, Discount Rate (Bank Rate), Selective credit control, Open market operation, Repos and Reverse Repos, Monitoring of commercial banks’ loan performance, Management of foreign exchange reserves and exchange rate, Dominions of Money: Narrow money, Broad money, High powered money, Framework of monetary policy, Formulation and implementation of monetary policy, monetary survey.
Commercial Banking: Business of commercial banks, Deposit creation and expansion, Sources and uses of bank funds, bank capital, Capital adequacy requirement, Liquidity and profitability, Asset liability management, structure of interest rates
Non-bank Financial Institutions: Life insurance companies, non-life insurance companies, Investment banks, Securities brokers and dealers, Pension fund
Other Financial Markets and Instruments: Capital market, Bond Market, Securities Market, Mooney market, Nature and measures of Risks, Market risk, Operation risk, Liquidity risk, credit risk, Models of portfolio management
Main Books Recommended:
 1)
Ritter, L. S., Silber W. (1988). Principles of Money, Banking and Financial Markets, Basic Books Inc. N.Y. [Mankiw, Marshal]
 2)
Shekhar, K.C. (2009). Banking Theory and Practice, 19th ed. Vikas Publishing House Private Ltd. [Blinder, Rejda]
References:
 3)
Black K., Skipper, Harold D. (2003). Life and Health Insurance 13th ed., Pearson Education, Inc. [Dewan]
 4)
Brigham E. F. Houston J.F. (2001). Fundamental of Financial Management, 9th ed., Harcourt Asia Pte Ltd. [Broyless, Christoffersen]