FIN-A0105

Fundamentals of Financial Markets and

Institutions

Vesa Puttonen
Spring 2024

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Course objectives
• Understanding the workings of financial markets and
institutions
– Commercial banks, central banks, investment banks
– Funds, insurance companies, financial innovations
– Which economic phenomena create the observed structure and
design of markets, institutions and products
• Understanding various facets of this and previous crises
– Crises in developed and emerging markets
– Regulation
• Students will be able to read and comprehend banks’ annual
reports and the articles of Financial Times.
→ Linking together arguments, understanding current
debates and challenges; almost no math / equations
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Course overview
Date Topic Mishkin& Eakins
Jan 10 Introduction to the course (I)
Introduction to the financial system (II) Ch 1, 2, 7
Jan 12 The global financial crisis 2008 – (III)
“Inside job” ^ 8
Jan 17 Fixing the financial system
European Capital Markets Union (IV) 9, 10
Jan 19 Central banks (VI)
Jan 24 Fundamentals of financial institutions and
commercial banking (V) 7, 17
Jan 26* Sauli Vilén, Inderes

Deadline for the Case: Friday, Jan 26 at 16:00

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^ Before the lecture watch ”Inside job” (2010 Full Documentary)
movie (Netflix)
Course overview
Date Topic Mishkin& Eakins

Jan 31 Financial regulation (VII) 18

Feb 2 Shadow banking (VIII) 19, 20, 22
Feb 7 Marko Hovi, Finnish Financial
Supervisory Authority
Feb 9 Financial innovations (IX) 19
Feb 14 Insurance companies (X) 21
Feb 16 Wrap-up, feedback and exam prep.

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Course materials

• On ”MyCourses” web page

• Lecture slides
• Guest lecture slides
• Material (Reading list, compulsory reading)
• Case material

• Course book not required in the exam but you may use
it as supplementary material
• Mishkin, F.S. and S.G. Eakins (2018/2016/2012): Financial
Markets and Institutions, Pearson (global edition)
• Chapters as indicated in the course overview

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Reading list
• Aktia, Q3 Interim Report January-September 2023.

• Mark Tuchet (2022). European Capital Markets: Where are we?

• European Parliament (2023). Understanding EU action on pensions. (by

Marketa Pape)

• EFAMA (2022). Asset Management in Europe. An Overview of the Asset

Management Industry. 14th edition. (pages 1-38)

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Grade

• Exam: 70%, Case: 30%

• Extra points possible for the case
• To pass the course, there are 3 requirements
• To take part in the exam
• To get at least half of the points from the exam (35/70)
• To get at least 50 points from the course overall

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Workload

• Lectures, 24 h
• Class preparation, 22 h
• Case and term paper preparation, 50 h
• Exam preparation, 60 h
• Exam (February 20, 2024 at 13-16 & April 8, 2024 at 16-
19)

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Case: ESG FUNDS
Guidelines:

• 2-4 students in a group

• Max. 20 Power Point slides (the contents - references & cover pages may come on top of this)

• Please follow the style (font size, graphics) of the downloaded example presentation (Goldman
Sachs).

• Please make sure that you always cite properly!

• Submit ONE report per group (put your NAMES on the cover page)

• Deadline: Friday, Jan 26 at 16:00

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Case (group work)
• Why ppt slides?

• Facilitates structuring and presentation of results

• Encourages you to focus on main aspects and think more

systematically about connections between various arguments /
facts and how to present them

• Encourages you to use various sources of information because

you can use pictures / graphs / cartoons besides text
• Facilitates grading

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Submission and grading policy

• Late submissions not accepted

• The only exception is: if you are sick, a report from your doctor
is needed
• I have a strict grading policy
• Once the case results are posted on the course webpage, there
is no room for change unless the grader has made an obvious
mistake
• So: you need to write ALL YOUR ARGUMENTS clearly in your
answers

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Scholastic honesty and academic
integrity
• I expect adherence to highest standards of scholastic
honesty
• Examples of scholastic dishonesty are
• Presenting answers as own work without proper citation to the
sources (plagiarism)
• Sharing answers during the final exam
• All case work is to be done by the students that submit
the work
• Co-operation in preparing the case between groups (or
individuals not belonging to the same group) is strictly prohibited

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Contact information

Professor Vesa Puttonen

Office hours: Mondays 14:00-15:00, T303 Ekonominaukio 1, 3rd

floor
vesa.puttonen@aalto.fi

https://www.aalto.fi/en/department-of-finance/vesa-puttonen

@InvestmentTraps

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