Overview:
The module begins with a brief review of development finance. The lectures are mainly concerned with formal and informal finance in emerging markets recently becoming more important to global finance. While formal financial service is easily accessed in developed countries, it’s not in developing countries, especially for poor or low-income people, including consumers, small and medium enterprises (SMEs) and the self-employed. Informal finance encompasses the range of financial services offered and used in by people of all income levels who are not traditionally served by formal financial service providers. It includes microfinance, rural finance and agricultural finance.
The module also explores whether theoretical concepts of modern finance such as portfolio risk management and asset valuation can apply to emerging markets in different regions. It is suitable for those progressing to financial industry, and economic development, both for academic positions and in government and non-government organisations at the international and national level.
Aims:
To present an overview the subject of modern finance.
To give students an understanding of asset pricing and market efficiency in emerging markets.
To introduce students to informal finance and its significance in economic development
To provide an opportunity for students to study, discuss and evaluate some current research dimensions of finance so that student can apply the methods taught in the module to solve specific problems in finance.
Objectives:
On completing the module a student will be able to:
Main References:
The reading will consist mainly of lecture notes, a number of articles which will also be recommended in the lectures, and the following textbooks.
Beatriz Armendariz and Jonathan Morduch, “The Economics of Microfinance,” The MIT Press, 2005
Frank J. Fabozzi and Franco Modigliani, “Capital Market: Institutions and Instruments,” 3rd Edition, Prentice Hall, 2003
Lecture Notes and Seminar