Course Outline

Course Title Introduction to the Banking System

Core or Elective Elective

Program and Batch

Semester & Academic Year Fall Semester 2021-22

Credits 4

Discipline/Area

Provide details, if this course is a Prerequisite

for any course/specialization

N.A.

Name of the Faculty Member/Course

Instructor

Prof. Keerti Pendyal

Contact Details of the Faculty Member kpendyal@jgu.edu.in, +91-8930302717

Contact Details of Support Staff

Faculty Member’s Open Office Day/s & Time By appointment through email

Introduction to the Course

This course is designed to provide the students with an introduction to the banking system and

financial system. The course starts by looking at the different financial systems present in the major

economies and the pros & cons of each of these financial systems. We then move on to identifying

the major components/players in the financial system – central banks, financial regulators,

investment banks, merchant banks, retail & commercial banks, etc. We study in detail the role

played by the Central Bank and the different kinds of banks as agents in the financial system.

Studying the roles played by the banks and Central Bank in the financial system will help us

understand their importance to the economy as well as the limitations of the banking & financial

system as it exists today. This brings us to the second part of the course where we take an

exploratory look at several technological solutions which have developed as a way to address some

of the shortcomings of the traditional banking & financial system. We will explore how these

digital finance products helped address the challenges faced by the (potential) users of the banking

system and also some of the pitfalls or difficulties that developers and users of the digital finance

products might face.

Course Learning Objectives (CLOs)

Upon successful completion of this course, students will learn and understand the following:

1. The importance of the banking and financial system to the macroeconomy

2. Different ways to categorize financial systems and their pros & cons

3. Role played by the different actors in the banking system

4. Challenges facing the banking system

5. Technology's impact on the banking system

Teaching Method

The classes will be lecture based.

Evaluation Schema

The course grade will be determined on the basis of:

Please note that the table below is an example of an evaluation schema

Assessment Task Weightage Nature Week of

Assessment

A1: Presentation on

case study

20% Group

A2: Quizzes (2 * 20%) 40% Individual

A3: End term

examination

40% Individual

Description of Assessments:

Students will be assessed on three components. The first component is case analysis. Students will

have to analyse cases and present their analysis. There will be 4 cases shared during the Corporate

Governance module of the course. Students will have to analyse the cases as part of a group and

the groups are required to present their analysis. The second component is quizzes. There will be

2 quizzes, each of 20% weightage. The quizzes will be multiple-choice based. The third and final

component is the end-term examination which will be a mix of multiple-choice questions and short

answer questions (weightage – 40%)

Text Book / Course Package / Other Readings

The Economics of Money, Banking, and Financial Markets by Frederic S. Mishkin

Chapter 1 of the book “Varieties of Capitalism” – Edited by Peter A. Hall and David Solskice

Additional articles and case studies will be shared by the instructor as needed in advance

Grade Sheet:

The schema of the grade sheet may change. Students will be informed well in advance of any

changes in the schema of the grade sheet.

JGU Policies and Expectations

Academic Integrity and Plagiarism:

Learning and knowledge production of any kind is a collaborative process. Collaboration demands

an ethical responsibility to acknowledge who we have learnt from, what we have learned, and how

reading and learning from others have helped us shape our own ideas. Even our own ideas

demand an acknowledgement of the sources and processes through which those ideas have

emerged. Thus, all ideas must be supported by citations. All ideas borrowed from articles, books,

journals, magazines, case laws, statutes, photographs, films, paintings, etc., in print or online, must

be credited with the original source. If the source or inspiration of your idea is a friend, a casual

chat, something that you overheard, or heard being discussed at a conference or in class, even they

must be duly credited. If you paraphrase or directly quote from a web source in the examination,

presentation or essays, the source must be acknowledged. The university has a framework to deal

with cases of plagiarism. All form of plagiarism will be taken seriously by the University and

prescribed sanctions will be imposed on those who commit plagiarism.

Disability Support and Accommodation Requirements:

JGU endeavours to make all its courses accessible to students. All students with any known

disability needing academic accommodation are required to register with the Disability Support

Committee dsc@jgu.edu.in. The Committee has so far identified the following conditions that

could possibly hinder student’s overall well-being. These include physical and mobility related

difficulties; visual impairment; hearing impairment; medical conditions; specific learning

difficulties e.g., dyslexia; mental health. The Disability Support Committee maintains strict

confidentiality of its discussions. Students should preferably register with the Committee during

the month of June/January as disability accommodation requires early planning. DSC will approve

of and coordinate all disability related services such as appointment of academic mentors,

arranging infrastructural facilities, and course related requirements such as special lectures,

tutorials, and examinations.

Safe Space Pledge:

This course may discuss a range of issues and events that might result in distress for some students.

Discussions in the course might also provoke strong emotional responses. To make sure that all

students collectively benefit from the course, and do not feel disturbed due to either the content of

the course or the conduct of the discussions. Therefore, it is incumbent upon all within the

classroom to pledge to maintain respect towards our peers. This does not mean that you need to

feel restrained about what you feel and what you want to say. Conversely, this is about creating a

safe space where everyone can speak and learn without inhibitions and fear. This responsibility

lies not only with students, but also with the instructor.

Session Plan: Please note that the session plan below is an example. Please change it according

to your own session plan, while maintaing the heading description of the columns.

Session Details CLOs Covered

Weeks 1 – 2 Overview of Financial Systems

CLOs 1, 2

Module 1 (4

sessions)

To make students understand the importance of the

financial system

Types of financial system

Readings Chapter 1 of the book “Varieties of Capitalism” – Edited by Peter A.

Hall and David Solskice

Case Title and

Number NA

Pedagogy Lecture

Week 3 Money

CLO 1

Objective of the

session

To make students understand the nature of money, different types and

measures

Readings Chapter 3 from “The Economics of Money, Banking, and Financial

Markets by Frederic S. Mishkin”

Case Title and

Number NA

Pedagogy Lecture

Weeks 4 – 5 International Monetary System and Exchange Rates

CLOs 1, 3 Objective of the

session

To make students understand the key players in the international

monetary system

To make students understand exchange rates and their macroeconomic

implications

Readings NA

Case Title and

Number NA

Pedagogy Lecture

Week 5 (session

2) Players in the Banking system

CLO 3

Objective of the

session

To make students understand who the key players are in the banking

system

Readings Chapters 11 and 14 from “The Economics of Money, Banking, and

Financial Markets by Frederic S. Mishkin”

Case Title and

Number NA

Pedagogy Lecture

Weeks 6 – 7 Central Banks

CLO 3

Objective of the

session

Central Banks

Functions of Central Banks

Monetary Policy instruments

Readings NA

Case Title and

Number NA

Pedagogy Lecture

Week 7 (session

2) and Week 8 Interest rates

CLO 3

Objective of the

session

Interest rates

Bond yields

Relationship between interest rates, bond yields, and bond

prices

Readings NA

Case Title and

Number NA

Pedagogy Lecture

Week 8 (session

2) Commercial banking system

CLO 3 Objective of the

session

Commercial Banks

Bank balance sheet

Readings NA

Case Title and

Number NA

Pedagogy Lecture

Weeks 9 – 10 Corporate Governance

CLOs 3, 4

Objective of the

session

Corporate Governance Issues in the banking industry

Conflict of interest

NPA

Promoter share

Entry of corporates

Students to do case study analysis and presentations

Readings NA

Case Title and

Number Cases will be shared 2 weeks in advance

Pedagogy Lecture/Presentations

Week 11 Other financial institutions in the banking system

CLOs 3

Objective of the

session

Development Financial Institutions

NBFCs

Readings NA

Case Title and

Number NA

Pedagogy Lecture

Week 12 Economic crises

CLOs 3, 4

Objective of the

session

Financial regulation, Financial crises and banking system

o Financial crises in the advanced economies

o Financial crises in the emerging economies

Readings Chapter 11 and 12 from “The Economics of Money, Banking, and

Financial Markets by Frederic S. Mishkin”

Case Title and

Number Case will be shared 2 weeks in advance

Pedagogy Lecture/Presentations

Weeks 13 – 15 Technology in Banking

CLO 5 Objective of the

session

Role of technology in banking

Central Banks’ response to emerging technologies

Emerging technologies in banking systems

o Wallets

o Blockchain, cryptocurrencies

o AI

o Payment gateways, payment systems

Readings NA

Case Title and

Number NA

Pedagogy Lecture

Week 15 (session

2) Summing up

Objective of the

session Summing up

Readings NA

Case Title and

Number NA

Pedagogy Lecture