Introduction to Banking and Financial Markets

By P C Narayan   |   Indian Institute of Management Bangalore (IIMB)
Learners enrolled: 2397
Welcome to the course “Introduction to Banking and Financial Markets

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. Rapid industrialization and the exponential increase in business and trade resulted in the need for businesses and governments to raise more capital (money) to sustain their growth. Simultaneously, the increase in international trade (exports and imports) between countries meant increased cross-border flow of goods and services and hence the need for cross-currency transactions and ‘exchange rates’ between currencies. 

Banks and Financial Markets evolved in this ‘eco-system’ primarily to channelize money from those who have it (savers/investors) to those who need it (borrowers) and to facilitate cross-border flow of funds through exchange of currencies. That eco-system of banks and financial markets (including Central Banks) has deepened in size, sophistication and complexity over the years. Consequently, the benefits of a robust eco-system of banking and financial markets facilitated and overseen by a strong Central Bank, are real and visible in most countries. However, 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!

In this course you will learn about:
The theory and concepts underlying Banking and Financial Markets
The products and instruments that are offered by Banks and Financial Markets to meet the financial needs of individuals, businesses and governments
The underlying market mechanisms and how the financial instruments are traded (i.e. bought and sold)
Course Status : Completed
Course Type : Core
Duration : 6 weeks
Start Date : 31 Jan 2021
End Date : 30 Apr 2021
Exam Date :
Enrollment Ends : 28 Feb 2021
Category :
  • Management Studies
Credit Points : 2
Level : Postgraduate

Page Visits

Course layout

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 it's 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

Instructor bio

P C Narayan

Indian Institute of Management Bangalore (IIMB)
P C Narayan is a faculty member in the Finance & Accounting Area at the Indian Institute of Management Bangalore (IIMB), where he has been teaching since 2003. His areas of research interest and expertise include risk management, banking and financial markets, international finance, regulation and monetary policy and technology related to banking and financial markets. His PhD thesis won the ‘Outstanding Doctoral Research Award’ of the European Foundation for Management Education and Emerald Publishing in 2013. He won the ‘Teaching Innovator Award-2016’ from the Ministry of Human Resources Development, Government of India for his innovative and effective use of technology in the graduate class-room. He was a member of the Advisory Group of the Unique Identification Authority of India (UIDAI) set up by the Government of India in 2009. He consults for and trains managers in several organizations in India and abroad in the banking, manufacturing and information technology sectors. Prior to joining IIMB, he was based overseas for several years with a multinational bank and subsequently as the President of a bank in India. Having spent many years in industry as well as in academia and having travelled to over 40 countries and having worked in 20 different countries, he brings a breadth of global experience and a unique cross-cultural perspective in his teaching and research.

Course certificate


Type of exam: Computer based exam 

You will have to appear at the allotted exam centre and produce your Hall ticket and Government Photo Identification Card for verification and take the exam in person. 
You can find the final allotted exam centre details in the hall ticket. The questions will be on the computer and the answers will have to be entered on the computer; type of questions may include multiple choice questions, fill in the blanks, essay type (subjective) type, etc. 


Weightage: 25% weightage for weekly assignment + 75% weightage for final exam. 

Passing Marks: You will be eligible for Certificate only if you score minimum 40% in Weekly Assessment and minimum 40% in Final Exam. 

If you score less than 40% in either weekly assessments (average) or in final exam, you will not receive the certificate. 

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