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FIN 360: CAPITAL MARKETS AND INSTITUTIONS
National Economics University, Hanoi Vietnam
Lecturers:
Office:
Email:
Nguyen Thi Minh Hue, PhD
Shool of Banking and Finance
huenm@neu.edu.vn
I. Course Description, Prerequisite and Objectives
A. Course Description
Capital formation, rates, markets and institutions. Flow of fund analysis, intermediation, interest
rate structures, risks and liquidity, management of financial institutions.
B. Course Prerequisite
FIN 300 Business Finance; Accounting
C. Course Objectives
The purpose of this course is to provide knowledge about financial system and to understand
how financial institutions and markets affect, and are affected by, the economy and its major
participants. The analytic framework concentrates on fundamental principles involving: money,
the financial institutions that create and transfer money and other financial claims, and the
financial markets in which various financial claims are traded. It provides a comprehensive
introduction to the world of financial institutions and markets and to the major players and
regulators who operate in and influence the world of finance. It looks at the major role that
financial institutions and markets play in facilitating economic activity and financing
transactions. It describes how the financial system has evolved under the influence of rising
interest rates, technological advances, and regulatory change. It notes that continuing
technological, regulatory, and institutional changes are having major effects on financial
institutions and markets as global financial markets develop and financial innovations spread
rapidly around the world. Models are provided to frame these principles so that the responses of
institutions and markets to stimuli can not only be explained and anticipated but also enhanced.
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II. Course Procedures
A. Class Conduct
The class will be divided into 10 groups, each group has to research a case study about Vietnam
and present in front of the class. 10 suggested topics of case study are:
1. State Bank of Vietnam (SBV)
2. Vietnam’s money market
3. VN’s bond market
4. VN’s mortgage market
5. VN’s foreign exchange market
6. VN’s stock market
7. VN’s commercial banks
8. Insurance companies in VN
9. Security companies in VN
10. Mutual funds in
Each topic should be studied in the issue overview of Vietnam first, then each group has to
confront with a critical thinking question that will be posed at the end of the related lecture. Detail
rules of the group presentation and assignment will be informed in class. The final group
assignment must be submited on time to avoid the punishment points
Besides, students have to do all required questions of each chapter. These questions will be
discussed in class; other questions will be answered individually by email or in office
B. Required Textbook: Financial Markets and Institutions, Fourth Edition, by Anthony
Saunders and Marcia M. Cornett; McGraw- Hill/Irwin. For class and exam preparation
purposes, read the topics that have been (or are scheduled to be) covered in class.
C. Grading
Student’s overall class grade will be based on your presentation, on one middle exams and a
final exam.
1. Class participation:
10%
2. Group assignment:
30%
3. The middle exam:
30%
4. The final exam
30%
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III. Course Outline
Course outline may be changed with verbal notice in class, as needed. It is the
student’s responsibility to attend class and keep up with any changes and announcements.
Week
Week 1
Week 2
Week 3
Week 4
Topic
Overview about Financial Markets and Institutions
Setting up 10 groups
Read
Chapter 1, 2
Interest Rates and Security Valuation
Chapter 3
Central Bank and Monetary Policy (the case of The
Federal Reserve System and Bank of England)
Chapter 4
Launching group working, assign specific topics to
the groups
1st group presentation: SBV
Money Markets
group presentation: VN’s money market
Bond markets
Chapter 5
2nd
Week 5
Week 6
3rd group presentation: VN’s bond markets
Mortgage markets
Chapter 6
Chapter 7
http://www.youtube.com/watch?v=CBIJwb37O
Week 8
4thgroup presentation: VN’s mortgage markets
Stock markets
5th group presentation: VN’s s stock markets
Foreign exchange markets
Week 9
Middle exam
(Guest speaker) (optional)
Week 7
Week 10
Week 11
Week 12
6th group presentation: VN’s foreign exchange
market
Commercial banks
7th group presentation: VN’s commercial banks
Insurance companies
8th group presentation: VN’s insurance companies
Securities Firms and Investment Banks
Week 13
9th group presentation: VN’s securities firms
Mutual Fund
Week 14
10th group presentation: VN’s mutual fund
Other open issues: Derivatives, Business valuation,
…
Week 15
Review for Final Exam
IV. Assigned Homework Questions
Chapter 8
Chapter 9
Cover Chapter 1-8
Chapter 11-12
Chapter 15
Chapter 16
Chapter 17
All chapters
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Assigned homework questions are tentative and may be changed verbal notice in class, as
needed. It is the student’s responsibility to attend class and keep up with any changes and
announcements. Homework questions are end-of-chapter questions in the textbook.