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ECO346

Financial Institutions

This course introduces students to the theory and practices of the financial system, covering both capital and money markets. It explores the organization and functions of commercial, merchant, and microfinance banks, as well as insurance companies. Topics include central banking, comparative banking systems, international financial institutions like the IMF and World Bank, and their roles in the Nigerian financial landscape. The course aims to equip graduates with the tools to function effectively as managers and decision-makers in financial markets.

About this course

Difficulty
Intermediate
Study hours
208 hours
Maths
Basic
Content
Theoretical, case study
Practical work
No
How it is assessed
  • Assignments
  • Tutor Marked Assignments
  • Final Examination

One paragraph, so you can see how it reads

ECO346 · UNIT 2 THE MONEY MARKET

It is imperative for confidence to be maintained in the financial system, especially in times of financial panic. It must be able to absorb shocks arising from the greater-than-anticipated and allowed for risks, and hence to contain a contractionary impact on activity and trade, as well as any inflationary effect on prices.

What you should be able to do

  1. Explain the structure and functions of the Nigerian financial system.
  2. Analyze the roles of various financial institutions, including commercial, merchant, and microfinance banks.
  3. Evaluate the impact of monetary policies on the Nigerian economy.
  4. Compare different banking systems and their relevance to Nigeria.
  5. Assess the influence of international financial institutions on Nigeria's economic development.
  6. Apply financial concepts to real-world scenarios in the Nigerian context.

What it prepares you for

Careers
  • Financial Analyst
  • Bank Manager
  • Investment Banker
  • Loan Officer
  • Financial Consultant
  • Economist
Where it is applied
  • Banking
  • Insurance
  • Investment Management
  • Financial Consulting
  • Government Financial Agencies

Where it gets hard

The units students slow down on, and what makes each one heavy.

  • Module 3:

    Unit 2: The International Monetary Fund (IMF)

    Understanding the complexities and implications of IMF conditionality requires critical analysis of economic policies and their impact on developing nations.

  • Module 3:

    Unit 5: The World Bank Group

    The intricate structure and operations of the World Bank Group, including its various agencies and their specific functions, demand a comprehensive understanding of international finance.

A suggested way through it

Suggested

13 weeks, about 30 hours in total. Yours will differ.

  1. Week 1Module 1:
    • Unit 1: The Meaning of Financial System · 2 hours

      Read the introduction to understand the scope and objectives of the course.. Define financial system and identify its key components.. Discuss the attributes of an ideal financial system..

  2. Week 2Module 1:
    • Unit 2: The Money Market · 2 hours

      Define money market and explain its role in the financial system.. Analyze the features of a developed money market.. Discuss the reasons for the establishment of the Nigerian money market..

  3. Week 3Module 1:
    • Unit 3: The Capital Market · 2 hours

      Explain the meaning of the capital market and its importance.. Clarify the segments of the capital market: primary and secondary markets.. Outline the functions of an active capital market..

  4. Week 4Module 1:
    • Unit 4: Organisation and Functions of Commercial Banks · 2 hours

      Define commercial banks and explain their role in the financial system.. Explain the organization and structure of commercial banks.. Outline the primary and secondary functions of commercial banks..

  5. Week 5Module 1:
    • Unit 5: Operating Bank Account · 2 hours

      Explain the steps to open a bank account.. Discuss the advantages of opening a bank account.. Differentiate between saving, current, fixed deposit, and recurring deposit accounts..

  6. Week 6Module 2:
    • Unit 1: Organisation and Functions of Merchant Banks and Development Banks · 2 hours

      Explain the meaning of merchant banks.. Trace the development of merchant banking in Nigeria.. Analyze the functions of merchant banks..

  7. Week 7Module 2:
    • Unit 2: The Microfinance Banks · 2 hours

      Discuss the meaning of microfinance and its role in economic development.. Explain the emergence of microfinance banks in Nigeria.. State the objectives of the National Microfinance Policy..

  8. Week 8Module 2:
    • Unit 3: Insurance Companies · 2 hours

      Explain the meaning of insurance and its importance in risk management.. Describe the development of insurance business in Nigeria.. State the different classes of insurance in Nigeria..

  9. Week 9Module 2:
    • Unit 4: The Central Bank · 2 hours

      Discuss the origin and evolution of the Central Bank of Nigeria.. State the functions of the Central Bank of Nigeria.. Analyze the policy implementation of the CBN..

  10. Week 10Module 2:
    • Unit 5: Comparative Banking and Financial System · 2 hours

      Discuss unit banking, branch banking, group banking, chain banking and universal banking. Explain advantages and disadvantages of each banking system..

  11. Week 11Module 3:
    • Unit 1: International Financial Institutions · 2 hours

      Explain the meaning of international financial institutions.. Describe a multilateral development bank.. List the Bretton Woods institutions..

  12. Week 12Module 3:
    • Unit 2: The International Monetary Fund (IMF) · 2 hours

      Explain the meaning of the International Monetary Fund (IMF).. Analyze the functions of the International Monetary Fund (IMF).. Explain IMF surveillance of the global economy..

    • Unit 3: The African Development Bank (AFDB) · 2 hours

      Discuss the African Development Bank Group (AFDB).. State the history of the African Development Bank (AFDB).. Describe the group entities of the African Development Bank Group (AFDB)..

  13. Week 13Module 3:
    • Unit 4: The International Bank for Reconstruction and Development (IBRD) or the World Bank · 2 hours

      Discuss the formation of the World Bank or the IBRD.. Analyze the functions of the World Bank.. State the purposes of the World Bank..

    • Unit 5: The World Bank Group · 2 hours

      Discuss agencies of the World Bank Group.. Explain the meaning and formation of the International Finance Corporation (IFC).. State the purpose and objectives of IFC..

Preparing for the exam

What to do
  • Create a detailed study schedule, allocating specific time slots for each unit.
  • Focus on understanding the key concepts and definitions related to financial institutions and markets.
  • Practice applying financial theories to real-world scenarios and case studies.
  • Review past assignments and tutor-marked assignments to identify areas of weakness.
  • Create concept maps linking different financial institutions and their roles in the economy.
  • Pay close attention to the functions and regulations of the Central Bank of Nigeria.
  • Familiarize yourself with the structures and operations of international financial institutions like the IMF and World Bank.

Questions students ask about this course

What is ECO346 about?

This course introduces students to the theory and practices of the financial system, covering both capital and money markets. It explores the organization and functions of commercial, merchant, and microfinance banks, as well as insurance companies. Topics include central banking, comparative banking systems, international financial institutions like the IMF and World Bank, and their roles in the Nigerian financial landscape. The course aims to equip graduates with the tools to function effectively as managers and decision-makers in financial markets.

How many units does ECO346 have?

ECO346, Financial Institutions, has 14 units across 3 modules, over 158 pages of course material. You can read it one unit at a time.

How many credit units is ECO346?

ECO346 carries 2 credit units, at 300 level in Social Sciences.

Is ECO346 hard?

ECO346 is rated intermediate level, with basic mathematical content. It is mostly theoretical and case study work.

How long does ECO346 take to study?

About 208 hours of study, spread across its 14 units.

How is ECO346 assessed?

ECO346 is assessed by Assignments, Tutor Marked Assignments and Final Examination.

What can I do with ECO346?

Financial Analyst, Bank Manager, Investment Banker, Loan Officer, Financial Consultant and Economist.

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