FIN3004S Finance and Financial institutions
Academic Year 2023/2024
Part 1 Financial systems: 1. Introduction to Financial Systems; Role of financial systems (role of households, government, and firms in terms of savings and investments). Financial intermediaries, securities and markets. Taxonomy of financial institutions. Nature of financial claims (debt versus equity, bonds and notes, fixed and floating interest rates, common and preferred stocks). Structure of financial markets (direct and indirect finance, dealers and brokers, banks, mutual funds, pension funds, and insurance companies). 2. Comparative Financial Systems; Bank-based systems against market-based systems. Legal aspects.
Part 2 Financial intermediaries: 3. Role of Financial Intermediation; Nature and process of financial intermediation. Theories of financial intermediation (transformation of assets, uncertainty, reduction in transaction costs, reduction of problems arising out of asymmetric information). Implications of financial intermediation (Hirshleifer model, effect on economic development). 4. Regulation of Banks; Regulation of banks (free banking, arguments for or against regulation, traditional regulation mechanisms, alternatives to traditional regulation). 5. Risk Management in Banking; Market risks: Liquidity risk, interest rate risk, foreign exchange risk. Credit risk: Screening and monitoring, credit rationing, collateral.
Part 3: Principles of finance: 6. Financial Securities: Risk and Return; Portfolio analysis: mean-variance portfolio theory. The portfolio selection process: the correlation of securities returns (single-index model and multi-index models). Asset pricing models: capital asset pricing models (CAPM) and arbitrage pricing model (APT). 7. Capital Budgeting; Pricing of bonds and stocks. Net present value. Project appraisal.
8. Financial Markets: Transmission of information; Efficient markets, theory and empirical evidence. Concepts of weak, semi-strong, and strong efficiency. Concepts of excess returns. Micro-structures.
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Curricular information is subject to change
Learning Outcomes:
Upon completion of this course, students should be able to:
Describe the various components and institutions of the financial system
Describe and analyse the role and functions of financial intermediation, regulation and risk management
Understand and analyse the most common financial instruments
Understand and apply the fundamental theories of finance
Lectures |
20 |
Specified Learning Activities |
80 |
Autonomous Student Learning |
100 |
Total |
200 |
---|
Requirements, Exclusions and Recommendations
Not applicable to this module.
Module Requisites and Incompatibles
Not applicable to this module.
Assessment Strategy
Assignment: Main Assignment |
Varies over the Trimester |
n/a |
Graded |
No |
40 |
Examination: Online Examination |
2 hour End of Trimester Exam |
No |
Graded |
No |
60 |
Carry forward of passed components No
Repeat |
Within Two Trimesters |
Feedback Strategy/Strategies
• Group/class feedback, post-assessment
How will my Feedback be Delivered?
General feedback is provided to students on all their submitted assessment components.
Professor Don Bredin |
Lecturer / Co-Lecturer |
Assoc Professor Julie Byrne |
Lecturer / Co-Lecturer |
Yung Chiang Yang |
Lecturer / Co-Lecturer |
Dr Cormac MacFhionnlaoich |
Lecturer / Co-Lecturer |
Professor Cal Muckley |
Lecturer / Co-Lecturer |
Dr Vassilios Papavassiliou |
Lecturer / Co-Lecturer |
Ms Diana Tan |
Lecturer / Co-Lecturer |
Dr Christina Burke |
Tutor |
Ms Michele Connolly Doran |
Tutor |
June Neo |
Tutor |
Rachel Sim |
Tutor |
Chee Shong Tan |
Tutor |
Charlene Tan Puay Koon |
Tutor |
Yung Chiang Yang |
Tutor |
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