Aims

This course aims at providing technical-institutional knowledge concerning financial institutions, markets and products. It also aims at providing the basic capabilities for critically evaluating financial products, constructing interest-related products and understanding financial markets and current developments in finance. The course also provides an introduction to the functioning of financial institutions. The knowledge and capabilities offered by this course are necessary for the understanding of more advanced finance-related courses in later years.

Previous knowledge

Basic principles Economy

Content

A first part of the course deals with interest calculation and offers methodologies for critically evaluating and comparing interest-related products. More specifically, we subsequently discuss simple and compound interest calculation, annuities, loans and disconto calculation. The use of the different calculation methodologies is illustrated by means of exercises and small case studies. In addition, we make active use of various multimedia sources such as websites of financial institutions, investment product brochures and announcements in the financial press. In a second part of the course, we discuss the current Belgian Financial Institutional context (in a European perspective), as well as some important developments in this area. Subsequently, we provide an overview of the different activities performed by a bank, and analyze the differences and similarities between banks and non-financial companies. More particularly, we discuss the most important assets and liabilities on a bank’s balance sheet, the analysis of simple credit packages, some basic principles of asset and liability management and the impact of ICT innovations on the relative importance of banks versus financial markets. The different theoretical concepts are illustrated by means of realistic examples and information from websites of financial institutions and regulators. A last part of the course explains how Belgian Financial Markets function (in a European perspective). We also discuss the most important financial products traded on these markets. As illustrative material, we use the book “Wegwijs in de financieel-economische berichtgeving” (de Tijd), complemented by websites of stock markets and simulation exercises.

Course material

Syllabus
Examples and samples
Toledo / e-platform

Is also included in other courses

• Bachelor of Business Economics (Abridged Programme) 120 ects.
• Bridging Programme: Master of Insurance Studies 60 ects.
• Bachelor of Business Economics 180 ects.
• Master of Management 60 ects.
• Bachelor of Language and Area Studies: Arabic and Islamic Studies (Minor in Economics) 180 ects.
• Bachelor of Language and Area Studies: Sinology (Minor in Economics) 180 ects.
• Bachelor of Language and Area Studies: Japanology (Minor in Economics) 180 ects.
• Bachelor in Business Economics (new students 2012-2013 and students 2011-2012) 180 ects.