Core Specializations (Banking, Finance and Insurance)

Program: M.COM
Subject:INTERNATIONAL FINANCIAL INSTITUTIONS AND MARKETS
(CS4) Semester: IV
Subject Code:
Total Lecture Hours: 60 – (4 Hours Per Week) Credits: 4

Learning Objectives:-
 To understand the International financial institutions and markets.
 To know the central banking system and International monetary system.
 To familiarizes with the financial institution system and Management of financial
industry.
 To know the Banking structure and competition.

Module I - Financial Institutions and Markets 10 Hours

Structure of financial institutions-International financial institutions- Fundamental of financial
markets- structure of international financial markets-Financial intermediaries-Types of financial
intermediaries-Regulation of financial system

Module II - Interest Rates and Efficient Market 12 Hours

Interest rate means-role of valuations - Interest rate changes-risk of interest rates-Efficient
market hypotheses - Evidence of efficient market hypotheses- Mini case analysis of efficient
market theory.

Module III - Monetary Policy 12 Hours

Fundamental of Financial institutions-Financial crisis- Central Banking and Federal
reserve system- structure of federal system-Inside the federal system-Structure and Independence
of Other Foreign Central Banks-difference between Federal reserve system and Central Bank-
Monetary policy- Tools, goals, Strategy of monetary policy.

Module IV - International Financial Markets 14Hours

Money markets-structure and function of money markets -Bond market-types of bonds-Stock
market-Classification of stock market-Mortgage market- mortgage loan amortization-types of
mortgage loan-E-finance-Foreign exchange market-Case Changes in Equilibrium exchange
range rate-mortgage loan discount decision-Mini-Case History of the Dow Jones Industrial
Average-Buying Foreign Stocks -Regulation of the international Stock Market.
Module V - International Banking and Institutions 12Hours
Banking and International financial institutions-General principles of Banking management-
Finance companies-Types of finance companies-Regulation of finance companies-Investment
Banks, Security Brokers, dealers-Venture capital Firms-Risk management in financial
institutions-Income Gap Analysis-Duration Gap Analysis-Hedging with financial Derivatives.
Cases- Hedging Foreign Exchange Risk withForward and Futures Contracts

Learning Outcomes: - After completing the course successfully, students will be able to
 The students are explored with International Financial Institutions and markets structure
and functions of international financial institutions.
 To familiarize with the risk management in financial institution and explore with various
stock market examples.

References Books
 International Financial institutions and markets; Frederic S. Mishkin Graduate School of
Business, Columbia University Stanley G. Eakins East Carolina University.
 Financial Institutions and Markets  BholePaperback – 25 Jun 2017.
 Global Financial Institutions and Markets;Hazel Johnson1st Edition, 2016.

Online resources:

 Monetary policy and global financial markets.Retrieved from

https://rbi.org.in/scripts/PublicationsView.aspx?Id=18709 chapter v-Monetary policy
stance, global financial markets, (5thOct2018).

 Dow Jones Industrial Average.Retrieved from

https://www.investopedia.com/articles/investing/082714/what-dow-means-and-why-we-
calculate-it-way-we-do.asp,(14thDec 2017).

 Federal Reserve System. Retrieved from

https://www.federalreserve.gov/paymentsystems/pfs_about.htm, (28th Oct, 2016).