Unit 1: Introduction LH 4
Overview of financial markets: primary markets versus secondary markets, money markets versus capital markets, foreign exchange markets, and derivative security markets; and Overview of financial institutions: types of financial institutions, unique economic functions performed by financial institutions.
Unit 2: Determinants of Interest Rates LH 4
The loanable funds theory—supply of loanable funds, demand for loanable funds, and equilibrium interest rate; Determinants of interest rates for individual securities; Term structure of interest rate; and Interest rate structure in Nepal.
Unit 3: The Central Bank and Monetary Policy LH 5 The central bank and its purposes; Monetary policy tools: open market operations, the discount rate, and reserve requirements; and Nepal Rastra Bank and monetary policy of Nepal.
Unit 4: Money Markets LH 5
Yields on money market securities: effective annual return, discount yields, single payment yields and bond equivalent yield; Money markets securities: Treasury bills, repurchase agreement, commercial paper, negotiable certificate of deposits and banker's acceptances; Money market participants; and Issues in money markets in Nepal.
Unit 5: Capital Markets LH 6
Capital market securities: Treasury notes and bonds, municipal bonds, corporate bonds, mortgaged backed securities and common stock; Participants of capital markets; Yield on capital markets securities; International aspects of capital markets; and Issues in capital markets in Nepal.
Unit 6: Commercial Banks and Other Lending Institutions LH 12
Definition of commercial bank; Financial statements, and off-balance sheet assets and liabilities; Financial statement analysis using a return on equity framework; Regulation of commercial banks: types of regulations and the regulators, liquidity regulation, capital adequacy regulation, and off-balance sheet regulation; Saving associations; Saving banks; Credit unions; Finance companies; Development bank; and Micro-credit development banks; Classification and regulation of financial institutions in Nepal.
Unit 7: Insurance Companies LH 5
Categories of insurance companies; Life insurance: types, the fair value of an annuity policy, and asset and liability structure; Property-casualty insurance companies: types, asset and liability structure, and profitability; Overview of insurance industry in Nepal; and Regulation and supervision mechanism in Nepal.
Unit 8: Securities Firms, Investment Banks, and Mutual Funds LH 4
Securities firm and investment bank activity areas; Asset and liability structure of securities firms and investment banks; Mutual funds: concept, types, NAV and fund operating expenses
Unit 9: Pension Funds LH 3
Concept of pension funds; Types of pension plans – defined-benefit plan, defined-contribution plan, and calculation of retirement benefits under defined benefit plan and defined contribution plan; and Pension fund management practices in Nepal.