School of Economics and Administrative Sciences \ Business Administration
Course Credit
ECTS Credit
Course Type
Instructional Language
Programs that can take the course
This course examines the structure, functioning, and key elements of financial markets. By analyzing the relationships between financial institutions, markets, and instruments, it focuses on topics such as interest rate determination, financial structure, banking economics, and financial regulations.
Textbook and / or References
1. Financial Markets and Institutions, A. Saunders, M. M. Cornett, Mc Graw Hill, NY 2007.
2. Yeni Finansal Düzen: Krizlerin Sonu mu?, Ali Alp, Fuat Oğuz, Doğan Kitap, 2011.
The aim of this course is to teach the elements, institutions and tools of the financial system, the measurement of interest rates, theories of interest, the behavior of interest rates and the analysis of the term structure, stock exchanges, financial structure, banking economics, management of assets and liabilities, liquidity, credit risk and capital adequacy in banks, the development of the Turkish Banking Sector, current situation, opportunities and risks. At the end of the course, students will be able to recognize the financial system, its elements, institutions and tools; they will know the meaning of interest and be able to interpret interest-related indicators; they will understand banking economics; they will understand the working conditions of banks and they will be able to discuss the development, current situation, opportunities and risks of the Turkish Banking Sector.
1. Understand the concepts of money and money supply and how they are measured.
2. Gain knowledge of Turkey’s monetary policy and explain its changes over time.
3. Understand the process of multiple deposit creation.
4. Recognize the role of the Central Bank in the economy.
5. Learn the objectives, methods, and authority of monetary policy.
6. Identify different debt market instruments and understand the Turkish bond market.
7. Analyze the term structure of interest rates and understand the behavior of interest rates across different maturities.
8. Understand the characteristics of the foreign exchange market and the process of exchange rate formation.
9. Analyze the impact of monetary changes on nominal income.
Week 1: Introduction to the Course
Week 2: Importance of Financial Markets and Their Relationship with the Real Sector
Week 3: Interest Rates, Their Importance in Financial Markets, and the Relationship Between Interest Rates and Security Prices
Week 4: Submarkets of Financial Markets (Money Market, Capital Market, Primary and Secondary Markets, Over-the-Counter Markets, Derivative Markets)
Week 5: Financial Instruments
Week 6: The Central Bank and Its Importance for Financial Markets
Week 7: Financial Institutions
Week 8: Supervision and Regulation of Banks (Basel II and CAMELS Principles)
Week 9: The International Financial System and Convergence in Global Regulations
Week 10: Financial Market Integration
Week 11: Competition Among Financial Centers
Week 12: The Evolution of Turkish Financial Markets Over the Last 30 Years
Tentative Assesment Methods
• Midterm 40 %
• Final 60 %
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