Financial Institutions and Services

UNIT-I

The basic Theoretical Framework: The financial system and its technology; The factors affecting the stability of the financial system; Development finance vs. universal banking; Financial intermediaries and Financial Innovation; RBI-Central Banking.

UNIT-II

The Financial Institutions: A brief historical perspective. An update on the performance of IDBI, ICICI, IFCI and SFCs, LIC & GIC- The banking Institutions: Commercial banks - the public and the private sectors - structure and comparative performance. The problems of competition; interest rates, spreads, and NPAs. Bank capital - adequacy norms and capital market support.

UNIT-III

The Non-banking financial institutions: Evolution, control by RBI and SEBI - A perspective on future role. Unit Trust of India and Mutual Funds. Reserve bank of India Framework for/Regulation of Bank Credit . Commercial paper: Features and advantages, Framework of Indian CP Market, effective cost/interest yield.

UNIT-IV

Insurance: The Economics of Insurance; Life Insurance; Reinsurance; The Insurance Industry and its regulation. Efficiency and the Structure of the Insurance Industry; Pension funds; Pension plans today.

UNIT-V

Financial services: Asset/fund based Financial services - lease finance, consumer credit and hire purchase finance, factoring definition, functions, advantages, evaluation and forfeiting, bills discounting, housing finance, venture capital financing. Fee-based / Advisory services: Stock broking, credit rating.

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