Course title

Management of Financial Institutions

Code

 FIN 340

Professor

Elena Naumovska Ph. D (associate professor)  

Upon completion of this learning program, the students should be able:

• To understand the functions performed by financial institutions and the way they influence the economic activity and the degree of financial development;
• To analyze the size, structure and level of development of the financial sector of the Republic of Macedonia, as well as the place and role of financial institutions (banks and non-banking financial institutions – insurance companies, pension funds and investment funds);
• To gain knowledge of the chronological development, legal and institutional background and how the individual financial institutions operate;
• To obtain knowledge about the regulation and supervision of individual financial institutions;
• To recognize the role of financial institutions as financial intermediaries and institutional investors;
• To become familiar how financial institutions raise their funds, as well as their investment strategies and techniques;
• To decide and choose between alternative forms of investing by individual investors;
• To analyze the functioning of financial institutions from the perspective of the risk they are exposed to;
• To become familiar with the models and techniques of risk management in individual types of financial institutions.

The course content will enable students to become familiar with the place and role of individual financial institutions – banks and non-banking institutions (pension funds, insurance companies and investment funds) within the overall financial system. By analyzing the basic functions performed by financial institutions (mobilization of savings, risk diversification, allocation of savings, reduction of information costs, and geographical and temporal redistribution of financial resources), students will be able to perceive the necessity of proper management of financial institutions aimed at encouraging economic activity and promoting financial development. Each particular type of finance institution will be analyzed from the following aspects: historical development, basic types, institutional and legal background, mode of operation, regulation and supervision, performance, investment of funds. In addition, students will be able to perform basic mathematical calculations specific to each type of financial institution, which together with theoretical knowledge will ultimately enable decision making and selection of the most favorable alternative among the various forms of investment. The course deals with the most important topics related to financial institutions and from the risk perspective they are exposed to. By studying this course students will be able to learn about the models and techniques of risk management in individual types of financial institutions.