Course Outline FICM

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BONGA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS


DEPARTMENT OF ACCOUNTING AND FINANCE
Course outline
Course code ACFN 622
Course Title Financial Institutions and Markets
Degree Program MSc. Degree in Accounting and Finance
Instructor’s Garedew Ganecho ; Email;-ganecho7033@gmail.com
Contact Hours 2
This course examines the nature, role and operation of the financial system. In
addition, it will provide profound knowledge regarding the characteristics of
various financial instruments that are created and traded in the financial market. The
Course Description topics include the financial system in perspective; financial assets, money and

financial transactions, financial markets in the financial system, financial institutions


in the financial system including bank and non-banking financial institutions, and
the importance of regulation on the financial institutions and markets. Besides, this
course looks at monetary policy and the central bank and the flow of
funds in the economy. Financial intermediaries are examined with particular
attention to their regulation, the composition of their assets and liabilities, and
their changing relative importance. Investment funds and pension funds are
included among the intermediaries. Due attention is given to current developments
in financial system in Ethiopia.

At the end of the course, students will be able to;


1. Identify the different types of financial markets and financial institutions:
2. Comprehend the role of Monitory Policy and central banking in the financial
system
Course Objectives
3. Conceptualize how to manage risks in financial Institutions
4. Distinguish between capital and Money Market Instruments
5. Explain how derivative instruments work in the financial market
6. Understand how to regulate financial Markets in the economy

Course Contents
CHAPTER ONE: FINANCIAL INSTITUTIONS
• Overview of Financial System
• Deposit Taking Financial Institutions
• Non Deposit Taking Financial Institutions
• Financial Institutions In Ethiopia
CHAPTER TWO: MONITORY POLICY AND CENTRAL BANKING
• What is Money?
• Monitory Policy
• Roles of Central Banks
• National Bank of Ethiopia
CHAPTER THREE: RISK MANAGEMENT IN FINANCIAL INSTITUTIONS
• Risks in Financial Institutions
• Managing Credit Risk
• Managing Liquidity Risk
• Managing Foreign Exchange Risk
• Managing other types of risks
CHAPTER FOUR: FINANCIAL INSTRUMENTS
• Overview of Financial markets
• Money Market Instruments
• Capital Market Instruments
• Foreign Exchange Market
• Money and capital Marks in Ethiopia
CHAPTER FIVE: DERIVATIVE MARKETS
• Option Market
• Future Markets
• Forward Market
• SWAP Market
• Other Derivative instruments
CHAPTER SIX: REGULATING FINANCIAL MARKETS
• Operation of Financial markets
• Financial Crises
• Government’s role in financial markets
• Theory of regulation
• Globalization and Regulation

IV.Reference Materials
1. Madura J. (2010). Financial Markets and Institutions, 10th edition, USA
2. Mishkin F.S. &Eakines S.G. (2006).Financial Markets and Institutions, 5th edition, USA
3. Chacko, Dessain,Hecht, Sjoman, (2006), Financial institutions and markets: A casebook,
Harvard University, 7th edition.
4. Fabozzi, Modigliani and Ferri (1998), Foundations of Financial Markets and institutions,
2nd edition, Prentice Hall.
5. Kidwell, Blackwell, Whidbee, Peterson, (2009), Financial Institutions, Markets, and
money, 10th edition.
6. Kidwell, Whidbee, Peterson (2006), Financial institutions, markets, and money, 9th Ed.
7. Santomero and Babbe, (2001), Financial markets, instruments, and institutions, 12nd
edition, Irwin/McGraw Hill,
8. Any other financial Markets and Institutions Book
V. Evaluation Criteria
Attendance and Participation 15 %
Article Summery and Presentation 15 %
Problems 20 %
Final Exam 50 %
Total 100%

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