Aims and Fit of Module

This module aims to give students a comprehensive and coherent view of the theory and practice in the financial market. The module will cover the theory of interest, payment systems, the bond market, the stock market, commercial banks, and nonbank financial institutions. Students should be able to understand the role of technology and financial regulation in shaping the financial market and risk management practices.

Learning outcomes

A. Show an understanding of the interest rate determination


B. Demonstrate an understanding of asset pricing in a general equilibrium framework


C. Apply the mutual fund theorem


D. Possess an in-depth understanding of the role of payment systems in the financial market.


E. Show an understanding of the banking balance sheet management.

Method of teaching and learning

The module will be delivered through a combination of lectures and seminars.  Lectures will be used to introduce key theories, concepts and economic models. In tutorials the student will have the opportunity to solve financial problems and numerical exercises, to analyse case studies, or to make presentations of research.