Wolkite University
College of Business and Economics
Department of Management
1. Course Information
Academic Year:
Semester: 2
Class Year: 4
Programme: Management
Course Title: Management of Financial Institutions
Course Code: MGMT 4182
Credit hours: 3
Pre-requisite: None
Status of the course: Core
2. Course Description
The course gives students understanding of the essence, need for, and the roles played by
financial institutions
3. Course Objective
The course is designed:
To enable students know about the various aspects of financial institutions
To create awareness about the operations of financial system
To provide students with understanding of the fundamental knowledge for those common
and important investment strategies in financial market.
To introduce the students with recent development of financial institutions
4. Course Content
CHAPTER 1-GENERAL INTRODUCTION: Introduction to Financial Institutions
Meaning and nature of financial institutions
Types of financial institutions
Functions of financial institutions
Role of financial institutions
Chapter Two: Banking System
Central Banking System
o Evolution of Central Banking
o Definition of a Central Bank
o Central Banking Functions
o Credit Control Methods
Monetary Policy & its Objectives
o Regulation of the financial system
Central banking system in Ethiopia
Commercial Banking system
o Definition of commercial banking
Commercial banking services
Domestic and international banking operation
Chapter Three: BANKING AND THE MANAGEMENT OF FINANCIAL
INSTITUTIONS
The Bank Balance Sheet
General Principles of Bank Management
Liquidity Management and the Role of Reserves
Asset Management
Liability Management
Capital Adequacy Management
Strategies for Managing Bank Capital
Chapter 4- ECONOMIC ANALYSIS OF BANKING REGULATION
Asymmetric Information and Banking Regulation
Restrictions on Asset Holdings and Bank Capital Requirements
Assessment of Risk Management
Political Economy of the Savings and Loan Crisis
The Financial Institutions Reform bank regulations
Chapter 5 - NONBANK FINANCE
Insurance
Pension funds
Mutual funds and internet
Reference:
Frederic S. Mishkin (2004),The Economics of Money, Banking and Financial Markets
Amling & Droms (1994) Investment Fundamentals"
Bodie Kane & Marcus, (1999) Investments. Fourth Edition McGraw - Hill Edition.
Herbert B. Mayo (1997) “Investments an Introduction". Fifth Edition
John C. Hull, (2003) “Options, futures and other derivatives". 5thEdition
Miller & Van Hose (1996) “Essentials of Banking and Financial Markets"
Radcliffe (1997) "Investment: Concepts, Analysis and Strategies." Fifth
Edition,Addison – Wesley Educational Publishers Inc.
Reilly and Brown (1997) “Investment Analysis and Portfolio Management" 5th
Edition.
Robert A. Haugen (1998) "Modern Investments theory". Fourth Edition
Sears and Trennephol (1993) “Investment Management.".
Money, Banking, International Trade & Public Finance - M.L.Jhingan, 6thRevised &
Enlarged Edition, Vrinda Publications (P) Ltd.
Money, Banking, and Financial Markets - Lloyd B. Thomas, Irwin McGraw-Hill
The Economics of Money, Banking, & Financial Markets - Frederic S.Mishkin,
7th Edition, Addison Wesley
Modern Money & Banking - Roger LeRoy Miller & David D.VanHoose, 3rd, Edition,
McGraw-Hill
