Introduction to Banking & Financial Markets

3-4 hours per week

Course Information

Course Length     : 5 weeks 
Estimated Effort  : 3 – 4 hrs per week

Course Overview

Centuries ago, ‘Barter’ was the only mode of exchange for goods and services. Then came ‘commodity money’ (gold) followed by ‘fiat money’ (currency) and the M1-M2-M3 measure of money. And now with rapid industrialisation and an exponential increase in business and trade, we see businesses and governments raising more capital to sustain their growth. Simultaneously, the increase in international trade or increased cross-border flow of goods and services made way for ‘exchange rates’ between currencies in cross-currency transactions. Thus, one can say that both the markets and the institutions of banking and finance sectors have evolved over the years.

That eco-system of banks and financial markets has deepened in size, sophistication, and complexity. Meanwhile, they have also been the subject of abuse, failures, and economic distress in several countries, with a ‘contagion effect’ on the rest of the World.

The IIMBx course Introduction to Banking and Financial Markets introduces learners to the dynamics of Banking and Financial Markets, related institutions, mechanisms, and processes

Professor PC Narayan

Course Instructor
Finance and Accounting
Indian Institute of Management Bangalore (IIMB).

Course Syllabus

Week 1: Overview of the Financial System
  • Role of Banking and Financial Markets in any Economy
  • How and Why are Banks Different from Manufacturing Companies?
  • How and Why are Financial Markets Different from Product Markets?
  • ‘Market for Lemons’ and its Relevance for Banking and Financial Markets
Week 2: Theory and Structure of Interest Rates
  • Determinants of Interest Rates
  • Term Structure of Interest Rates
  • Recap of Time Value of Money
  • Yield, Yield-to-Maturity and Bond Pricing
  • Bond Valuation
Week 3: Short Term Financial Markets
  • Financial Markets: An Overview
  • Call Money Market
  • Treasury Bills Market
  • REPO Market
  • CBLO Market
  • Commercial Paper Market
  • Market for Certificate of Deposits
  • Bankers’ Acceptance
  • Pricing Money Market Instruments
Week 4: Long Term Financial Markets
  • Bond Market
  • Equity Stock Market
  • Private Equity Market
Week 5: Other Important Financial Markets
  • Foreign Exchange Market
  • Derivatives Market
  • Mortgages Market
Week 6: Final Exam
  • Testing Time!!

By the end of this course, learners will be able to:

  • Explain the theories and concepts underlying Banking and Financial Markets
  • Identify the products and instruments that are offered by Banks and Financial Markets to meet the financial needs of individuals, businesses, and governments
  • Describe the underlying market mechanisms and explain how the financial instruments are traded
  • Explain the risks embedded in Banking and Financial markets
  • Identify the regulatory and governance mechanism that minimise the impact of possible adverse outcomes and contagion effects

Executives, students pursuing post graduate and those aspiring to develop to advance their knowledge in the field of Banking and Finance

Singarayan Devanesan
Keep up the same work and looking forward Course 2


Mehdi Oualha
The last courses were a little long and could have been divided.

Ramya Raghavan
Can add few news links pertaining to latest topics to enhance knowledge about the topic in the real world context

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