BEC-56306 Financial Markets and Institutions

Course

Credits 6.00

Teaching methodContact hours
Individual Paper4
Lecture24
Tutorial12
Excursion (one day)4
Independent study0
Course coordinator(s)prof. dr. ir. AGJM Oude Lansink
Lecturer(s)prof. dr. ir. AGJM Oude Lansink
Examiner(s)prof. dr. ir. AGJM Oude Lansink

Language of instruction:

EN

Assumed knowledge on:

Students are assumed to be familiar with concepts and methods used in corporate financial management and accounting such as balance sheets, profit-loss accounts and investment appraisal. The target group are MME students but the course can also be taken by other students.

Continuation courses:

Thesis or internship Business Economics

Contents:

Financial markets nowadays play a crucial role in western economies. Financial markets signal scarcities in financial resources, they enable transactions in the real economy and provide financial resources for firms and households to invest in future activities. A wide range of institutions has developed to support and monitor the functioning of financial markets. However, the financial crisis of 2008 demonstrated that financial markets and their institutions may fail, and that the consequences of such a failure can have severe consequences for the real economy. Many debates in society, for example around the Brexit, pension funds and government debts, have their roots in financial markets or have financial market dimensions.

Learning outcomes:

After successful completion of this course students are expected to be able to:
- explain the main functions of the financial system;
- explain the main drivers of financial crises;
- explain the main institutions and regulations underlying European financial integration;
- explain the monetary policy and strategy of the European Central Bank;
- describe the main financial markets and discuss important developments since the start of the monetary union;
- describe different types of institutional investors and explain the drivers of the growth of institutional investments;
- explain the role of banks in financial markets;
- explain why governments regulate and supervise financial markets.

Activities:

Lectures

The lectures consist of ten meetings in which the course materials are presented.

Paper
Students write an individual paper on a topic related to financial markets and institutions. The list of topics will be provided in week 1 of the course. The paper will be developed throughout the period based on more detailed instructions that are provided during the course.


Practical

Students evaluate the main financial news items of the past week in relation to the contents of the course. In addition, students will make computer assignments.


A one day excursion to a bank or other financial institution is part of the course.

Examination:

The grade of the course is based on:

- written exam (60%);

- presentation of the financial news (5%);

- paper (35%).

Literature:

De Haan, Oosterloo and Schoenmaker, Financial Markets and Institutions: A European Perspective (3rd edition) Cambridge University Press. ISBN 9781107539365