FINANCIAL MARKET DAN BANKING SERVICES

About this Course

At the end of the course, students will be able to describe the features of financial markets (money, foreign exchange, capital, derivatives and offshore) and the current banking practices of banking institutions in the Malaysian financial system. It also deals with the role of Bank Negara Malaysia, financial legal framework, banking and credit services, management and performance evaluation of banks. This course also serves as a basis for further investigation into the growth of financial technology and their applications in the financial services industry.

Course Learning Outcomes

1) Explains the structure of the financial market, roles of the financial system and the application of digital technologies to financial services in Malaysia.
2) Apply concepts and principles in relation to banking practice.
3) Demonstrate managerial skills in evaluating bank and non-bank performance within the Malaysian banking system through group work and presentation.

Course Syllabus

+ Course Syllabus

1) Introduction and Overview of Financial System
a) Overview of the development and structure of the Malaysian financial system
b) The importance of financial stability
c) Financial intermediation functions and benefits
d) Role, functions and sources & uses of funds of commercial banks, investment banks and non-bank financial institutions
e) Islamic Banking
f) Overview of the financial markets
g) Risks of financial institutions

2) Interest Rates
a) Definition of interest rate
b) Nominal rates
c) Real interest rates
d) Theory of interest rates
e) Determinants of interest rates

3) The Role of a Central Bank
a) Introduction to Bank Negara Malaysia
b) The objectives of Bank Negara Malaysia
c) The functions of Bank Negara Malaysia
d) Monetary instruments
e) Reserves of Bank Negara Malaysia

4) Money Market
a) Development of Money Market (MM)
b) Objectives and participants of MM
c) Description of MM instruments
d) Calculation of proceeds

5) Foreign Exchange Market
a) The characteristics,development and participants of forex
b) The roles of BNM in forex marke
c) Forex quotation
d) The risks and factors affecting forex
e) Basic trading strategies (calculation of profit/loss)
f) Minimizing risk

6) Capital Market: Equity Market
a) The development and regulatory structure of equity market
b) Types of markets [primary, secondary markets]
c) The roles and functions of equity market Institutions: Securities Commission, Bursa Malaysia Securities Berhad
d) Common stock (features, types, operation of stock trading, advantages and disadvantages)
e) The risks and factors affecting equity market

7) Capital Market: Bond Market
a) The development and regulatory structure of bond market
b) Brief description of bond instruments
c) Participants and basic valuation of bond
d) Bond ratings

8) Derivatives Market
a) The development and structure of derivatives market
b) The participants, derivative products and underlying instruments
c) The concept of futures and option contracts

9) Offshore Market
a) The role of offshore financial center
b) Offshore business activities (offshore banking and offshore companies)
c) Tax Structure (activities and its tax rate)

10) Banking Products and Services: Deposit and Remittance
a) Saving account
b) Fixed deposit account
c) Negotiable Instrument of Deposits
d) Current account
e) Cashier’s Order
f) Demand Draft
g) Telegraphic Transfer
h) Online Transfer

11) Banking Products & Services: Internet Banking
a) Internet banking explained
b) Advantages and disadvantages of internet banking
c) Electronic-banking

12) Banking Products & Services: Credit Facilities
a) Hire purchase
b) Block discounting
c) Leasing
d) Factoring
e) Bridging loan / End Financing

13) Banking Products & Services: Consumer Products
a) Automated Teller Machine (ATM)
b) Credit Cards
c) Debit Cards
d) Charge Cards

Frequently Asked Questions

Q1 : 1) Who may enroll into this course?
A1 : Anyone interested to the financial markets and banking services.