Financial markets and institutions

2022/2023
Programme:
Financial mathematics, First Cycle
Year:
3 year
Semester:
second
Kind:
mandatory
ECTS:
6
Language:
slovenian
Lecturers:

Aleš Berk Skok, Marko Košak

Hours per week – 2. semester:
Lectures
4
Seminar
0
Tutorial
2
Lab
0
Content (Syllabus outline)

Significance, functions and types of financial institutions and markets.
Money market, capital market (primary and secondary market), foreign exchange market.
National financial markets and development of trading systems.
International financial markets (Euromarket, eurobonds and foreign bonds markets, eurocredit market)
Integration , fragmentation and quality of the markets.
The role of financial investors and their trading activities (insurance companies, investment funds, pension funds and their investments).
Regulation of the financial sector.
Specificities of the Slovenian financial market and institutions.

Readings

J. Madura: Financial Markets and Institutions, 7th edition, South-Western, Mason, 2006.
B. Stein: The European Equity Markets, European Capital Markets Institute, Copenhagen, 1996.
F. J. Fabozzi, F. Modigliani: Capital Markets, Institutions and Instruments, 3rd edition, Prentice Hall, Englewood Cliffs, 2002.

Objectives and competences

The purpose of the course is for students to learn about the characteristics of the modern financial system in developed economies. Students get acquainted with the most important components of the modern financial system: participants, financial instruments, types of financial markets and their characteristics, organization of trading and the ways the financial sector is regulated. Students study price setting mechanism in financial markets both, for money and capital markets, which have impact on valuation of financial assets. The course topics are built on the previous knowledge students expectedly obtain in the preceding finance courses that are also part of the program. A lot of attention is paid to studying the role of the institutional investors in the financial system.

Intended learning outcomes

Knowledge and understanding:
Students learn about facts and procedures. They master terminology, rules, theories, phenomena, structures, processes, relations, procedures etc.
Application: Application of principles, rules and models to individual cases is learned. Students are also able to link the principles, rules and models to real world situations. They can justify and evaluate the use of rules and models.
Reflection: on understanding of the theory in practical situations, critical evaluation of the theoretical models in practice.
Transferable skills:
Students should gain skills regarding use of domestic and foreign literature from the field of financial markets and institutions, and critically perform their collection and interpretation, including those from the daily professional press.

Learning and teaching methods

The major part of course topics is presented through lectures, whereby modern teaching methods (e.g. internet and video interfaces) are used. Students have to attend lectures, excercise sessions and successful complete seminar assignment.

Assessment

Written exam after the lectures are finished (for a pass grade student has to gain at least 50%)
Seminar assignment contributes 25% of the final grade
Mid-term exam contributes 25% to the final grade
60%-67.5% zd(6), 68%-75.5% db(7), 76%-83.5% pdb (8), 84%-91.5% pdb (9), nad 92% odl (10).
grading: 5 (fail), 6-10 (pass) (according to the Statute of UL)

Lecturer's references

KOŠAK, Marko, ZORIĆ, Jelena. Accounting for heterogeneity in cross-country bank efficiency comparisons : the case of new EU member states. The Economics of Transition, ISSN 0967-0750, Jul. 2011, vol. 19, iss. 3, str. 473-494. [COBISS-SI-ID 20154342]
ČOK, Mitja, SAMBT, Jože, KOŠAK, Marko, VERBIČ, Miroslav, MAJCEN, Boris. Distribution of personal income tax changes in Slovenia. Post-communist economies, ISSN 1463-1377, Dec. 2012, vol. 24, no. 4, str. 503-515, ilustr. [COBISS-SI-ID 1667726]
KOŠAK, Marko, LONČARSKI, Igor, SLAPNIČAR, Sergeja. Corporate governance in the Slovenian banking sector : an empirical survey. V: Corporate governance of banks : special issue, (Bančni vestnik, ISSN 0005-4631, Vol. 59, no 11, Nov. 2010). Ljubljana: Združenje bank Slovenije, 2010, vol. 59, no. 11, str. 29-38, ilustr. [COBISS-SI-ID 19640038]
BERK SKOK, Aleš, SIMONETI, Marko. Naložbeni pokojninski skladi, dolgoročna vzdržnost javnih financ in finančna stabilnost v Sloveniji. Management, ISSN 1854-4223, pomlad 2011, leto 6, št. 1, str. 61-83. [COBISS-SI-ID 20097254]
BERK SKOK, Aleš. Poslovanje institucij trga kapitala v finančni krizi in priložnosti za razvoj kapitala. IB revija, ISSN 1318-2803. [Slovenska izd.], 2010, letn. 44, št. 3-4, str. 91-120. [COBISS-SI-ID 512298364]
RUPNIK, Ksenija, BERK SKOK, Aleš. Geneza in reševanje sedanje finančne krize. Bančni vestnik, ISSN 0005-4631, jan./feb. 2009, letn. 58, št. 1/2, str. 50-55. [COBISS-SI-ID 18364646]
BERK SKOK, Aleš, RUPNIK, Ksenija. Dejavniki kreditnega razmika v finančni krizi = Determinants of credit spread in a financial crisis. Bančni vestnik, ISSN 0005-4631, maj 2009, letn. 58, št. 5, str. 28-33, ilustr. [COBISS-SI-ID 18546662]
ČOK, Mitja, SAMBT, Jože, BERK SKOK, Aleš, KOŠAK, Marko. Long-term sustainability of the Slovenian pension system. Economic and business review, ISSN 1580-0466. [Tiskana izd.], Dec. 2008, vol. 10, no. 4, str. 271-288, tabele. [COBISS-SI-ID 18350822]
GOLJUF, Dejan, BERK SKOK, Aleš. Pomen stabilizacije trga kritih obveznic za Evrosistem. Bančni vestnik, ISSN 0005-4631, okt. 2009, letn. 58, št. 10, str. 17-20, ilustr. [COBISS-SI-ID 18758630]