University
of Scranton
The
Arthur J. Kania School of Management
Economics/Finance
Department
Course Number: FIN 589 Semester:
Summer I 2001
Course Title: Special Topics in Finance: Office: Brennan Hall 310
Global Financial Markets & Institutions Office
Hours: M-T-Th: 3:00 - 6:00 P.M.
Instructor: Dr. John
N. Kallianiotis and
by appointment
Telephone: 941-7577 and 941-4048
E-mail: jnk353@scranton.edu
Required Text: Global
Financial Institutions and Markets, by Hazel J. Johnson, Blackwell
Publishers, Malden, MS, 2000.
Suggested books: 1. Balance
of Payments Adjustment: Macro Facets of International
Finance
Revisited, Edited by Augustine C. Arize et al., Greenwood Press, Westport, CT, 2000.
2. The Wall Street Journal
3. International Financial
Markets, by Alan L. Tucker, Jeff Madura,
and Thomas C. Chiang, West
Publishing Company, New York, 1991.
Description of
Course:
This course is a survey of the global financial markets, Money,
Capital, Foreign Exchange, Euromarkets, etc. and how these markets make it
possible for resources to be devoted to productive uses for the benefit of the
international community. It also deals
with the global financial institutions, their functions, and their regulations,
like Central banks, Commercial and non-commercial banks, Savings and Loan
Associations, Mutual Savings Banks, and other thrift institutions. It analyzes instruments, prices interest
rate and exchange rate, assets and liabilities management, and the impact of
technology on our global operations.
The material covered here will assist the student to understand the
global financial system, its help to accomplish resource allocation and make
him more competitive as a practitioner in this dynamic financial services
market.
Objectives:
1.
To give
students an International view on Financial Markets, Institutions, Instruments,
economic agreements, technological innovations, valuation, regulations,
policies, risk management, and other issues for our global financial system.
2.
To familiarize
students with the global resource allocation through the financial system and
with its importance for our current open and dynamic economies.
3.
To teach
students empirical topics and different research techniques in order to be
competitive in their financial services future occupation or further studies.
TOPICS COVERED:
Topics Classroom
Hours
1.
Domestic
Money Markets 3
1. Overview of the Financial Services Industry
2. Money
3. Money Markets
2.
Domestic
Capital Markets 4
4. Capital Market
Instruments
5. Capital Markets and
International Diversification
6. Investment Banking
7. Derivative Securities
3.
International
Financial Markets 4
8. Foreign Exchange Markets
8a. Exchange Rate Determination
9. Euromarkets
9a. European Union
4.
The Interest
Rate Environment 3
10. Interest Rate Fundamentals
10a. Interest Rate Determination
11. Interest and Exchange Rate
Patterns
Topics Classroom
Hours
5.
The
Formation of U.S. Bank Regulation 3
12. The U.S. Bank Regulation
and the
Federal Reserve System
13. U.S. Monetary Policy,
Deregulation and Deposit
Insurance
14. Central Banks and
Regulatory Systems Outside
the U.S.
6.
Management
of Financial Institutiions 5
15. Profitability, Liquidity,
and Liability Management
16. Investment and Loan
Portfolio Management
17. Capital and
Asset/Liability Management
18. Bank Valuation
19. Regional Trade Agreements
and Financial Services
7.
Bank
Operations 6
20. Commercial and
Noncommercial Banks
21. The Domestic Operations of
Commercial Banks
22. The International
Operations of Commercial Banks
23. The Impact of
Technological Change
24. Commercial Banks and the
Securities Markets
25. Nationwide Banking and the
Riegle-Neal Act
8.
Nonbank
Financial Institutions 6
26. Savings and Loan
Associations and
Mutual Savings Banks
27. Credit Unions
28. Investment Companies
29. Pension Funds
30. Insurance Companies
31. Finance Companies
9.
Empirical
Evidence on Interest and Exchange
Rate Determination
32. Efficiency and
International Parity Conditions
33. Econometric Models on
Interest and Exchange Rate
Class Meetings:
The class meets for 12 sessions of 3 hours and 10 minutes duration,
plus a final exam.
Teaching Methods,
Exams, and Assigned Readings:
There will be lectures, classroom discussions, homework assignments,
and a group project on some original empirical research by using the
literature, international data, econometrics, and computers (TSP or Eviews). A midterm exam will be on June 18 and the
final at the end of the session. Each
exam and the assignments together with your class participation and performance
will count for 33% of the course.