The course aims at providing a fundamental understanding of the following subject areas:

1. structure and functions of the financial system;

2. economics of financial markets and intermediaries;

3. money and interest rates;

4. risks and returns of financial assets;

5. financial and credit intermediation activities and regulation;

6. banking operations and the most common financial instruments.

We'll start with the fundamentals of financial intermediation and the factors that determine interest rates. This section also covers how to evaluate securities and how monetary policies of central banks like the Fed and the ECB influence interest rates. Next, we'll examine the primary securities markets. You'll learn about the operation of money markets, bond markets, stock markets, and the derivatives and foreign exchange markets. Finally, we'll focus on commercial banks. We'll analyze their core functions, learn to interpret their financial statements, and explore the regulatory framework designed to ensure the stability of the banking system.

Prerequisites: No prerequisites.

Teaching Methods: The educational methodology encompasses a diverse range of instructional approaches to facilitate comprehensive learning. These include frontal and participatory lectures to convey core concepts, complemented by scientific seminars to explore specialized topics.

Teaching Materials: Textbook chapters, lecture slides and additional materials provided by the teacher.

Reference textbook: Saunders A., Cornett M. M. and Erhemjamts O. “Financial Markets and Institutions” (2024 release), McGraw-Hill.