Financial Markets and Institutions


Course Objective

In the course students develop a deep understanding of financial
markets, bank supervision and central banking (Bridging Theory and
Practice - knowledge). You learn to analyze real-life applications such
as recent central bank and regulatory policies using the concepts from
the literature (Bridging Theory and Practice - Application). You solve
problem sets (Academic and Research Skills) and form teams to work on
case studies (Social Professional Skills).

After the course, you can:
- explain how financial markets and institutions affect everyday life as
well as how they create value and why this is the case;
- state stylized facts of the term structure of interest rates;
- describe the structure of the banking sector and banking supervision;
- explain the main risks involved in banking and the most important
tools to manage these risk;
- explain the need for regulation of the financial system;
- describe approaches to managing systemic risk and recent developments
in the regulatory framework;
- define the principles of monetary policy;
- interpret decisions by central banks on monetary policy and how they
affect the financial system and the real economy.

Course Content

Financial markets are playing an important role in a modern economy.
This course gives students an overview on how the financial system
operates and where its weaknesses lie. It is an important building block
for understanding our economy and students can connect micro and macro
theories to the concepts developed in this course. The course also
provides the necessary background for a future career in a financial
institution or policy environment.

Teaching Methods


Method of Assessment

Written exam – Individual assessment.
Interim Assignments – Group assessment.

Entry Requirements

Finance I or equivalent.


- Mishkin, Matthews and Guiliodori (2013) Economics of Money, Banking
and Financial Markets: European edition, 1st European edition, Pearson.
ISBN 978-0273731801 (a second edition may be available by 2019)
- Additional readings will be announced on Canvas.

Additional Information

It is not allowed to follow this course if you already earned credits
(ECs) for the course Finance, Banking & Insurance from the old

Recommended background knowledge

Finance I, Finance II and Corporate Finance.

General Information

Course Code E_EBE3_FMI
Credits 6 EC
Period P4
Course Level 300
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator dr. J. Wrampelmeyer
Examiner dr. J. Wrampelmeyer
Teaching Staff

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Seminar, Instruction course, Lecture
Target audiences

This course is also available as: