MELAKA
SEMESTER 4 (D4), JAN-JUN 2012
DEPARTMENT: SCIENCE QUANTITATIVES
FIN2325: MONEY & BANKING
CREDIT HOURS : 3
CONTACT HOURS : 4
STATUS : CORE
SUBJECT’S OBJECTIVE:
On completion of this subject, students will be able to:
· Have an overview of Malaysian banking system.
· Understand the structure of the financial institutions and markets
· Identify services provided by financial institution.
· Understand the economics of the financial institutions operate (conventional and Islamic banking).
· Understand the finance of domestic and international trade.
LEARNING OUTCOMES:
On completion of this paper, student will able to:
· Explain the characteristics, functions, types and development of money in Malaysia.
· Describe the structure of financial institutions and markets.
· Identify and analyze the services provided by financial institutions.
· Describe the electronic banking in Malaysia.
SUBJECT DESCRIPTION:
This subject exposes students to the basic concept of money, Malaysian financial system, understand banking products and services and ability to integrate business concerns with technology solution in the banking sector.
SCHEME OF WORK:
WEEK | TOPIC / SUB-TOPIC | LOD | REFERNCE | ASSESSMENT |
Week 1 | 1.0 INTRODUCTION 1.1 Definition of money 1.2 The characteristics of money 1.3 The functions of money 1.4 The development of money in Malaysia 1.5 Money supply in Malaysia 1.6 An overview of banking in Malaysia | L1 L1 L1 L2 L1 L2 | Mishkin F.S: Chapter 3 | TEST 1 |
Week 2-6 | 2.0 MALAYSIAN FINANCIAL SYSTEM 2.1 Banking System 2.1.1 Role of Bank Negara 2.1.2 Commercial Banks 2.1.3 Investment Bank 2.1.4 Offshore Banking in Labuan 2.1.5 Islamic Banking in Malaysia 2.2 The Non – Bank Financial Intermediaries 2.2.1 The Development Finance Institutions 2.2.2 The Saving Institutions 2.2.3 The Employee Provident and Pensions Funds (EPF) 2.2.4 The Insurance Companies 2.2.5 The Other Financial Institutions 2.3 Financial Market 2.3.1 Money Market 2.3.2 Capital market 2.3.3 Foreign Exchange Market | L3 L3 L3 L3 L3 L3 L3 L3 L3 L3 L2 L2 L2 | Pang. J Chapter 4 Pang. J Chapter 6 Pang. J Chapter 5 | TEST 1 |
Week 7-8 | 3.0 DEPOSITS AND REMITTANCES 3.1 Current account 3.2 Saving account 3.3 Fixed deposit account 3.4 Ringgit Negotiable Certificate of Deposits (NCDs) 3.5 Banker’s Cheque 3.6 Demand Draft 3.7 Telegraphic Transfer 3.8 Mail Transfer 3.9 Standing Instructions | L3 L3 L3 L3 L3 L3 L3 L3 L3 L3 | Pang. J Chapter 8, 10 | TEST 2 |
Week 9 | 4.0 LOANS AND ADVANCES 4.1 Overdraft 4.2 Outstation Cheque Purchased 4.3 Housing Loan 4.4 Personal Loan 4.5 Bridging Loan / End Financing 4.6 Probate Advance 4.7 Block Discounting / Revolving Credit 4.8 Credit Facilities Under CGC Scheme (Credit Guarantee Corp) | L3 L3 L3 L3 L3 L3 L3 L3 | Pang. J Chapter 9 | TEST 2 |
Week 10-11 | 5.0 OTHER BANKING / FINANCIAL SERVICES 5.1 Bank Guarantee 5.2 Traveler’s Cheque 5.3 Credit / Charge card 5.4 Income Tax Management 5.5 Investment Management 5.6 Executorships / Administrator and Trustee services 5.7 Safe Deposit 5.8 Night safe Facility 5.9 Hire Purchase 5.10 Leasing Factoring | L3 L3 L3 L3 L3 L3 L3 L3 L3 L3 L3 | Pang. J Chapter 11 | TEST 2 |
Week 12 | 6.0 FINANCE OF DOMESTIC AND INTERNATIONAL TRADE 6.1 Documentary Collection 6.2 Documentary Credit 6.3 Shipping Guarantee 6.4 Trust Receipt and Bankers Acceptance 6.5 Export Credit Refinancing Scheme | L3 L3 L3 L3 L3 | Pang. J Chapter 14-17 | TEST 2 |
Week 13 | 7.0 ELECTRONIC BANKING 7.1 Electronic Banking for Consumer 7.2 Electronic Banking for Corporate 7.3 Inter-bank Electronic Banking | L3 L3 L3 | Pang. J Chapter 12 | TEST 2 |
Week 14 | Presentation of Group Project | |||
Week 15 | Revision | |||
Week 16-18 | Final Exam |
EXAMINATION ASSESSMENT:
Continuous assessment: test (2) 20%
Assignment and Presentation (2) 30%
Final examination 50%
TOTAL 100%
QUESTION FORMAT:
Final examination:
Section a: short answer- 20 questions
Section b: essay question- 5 questions (answer 3 only)
Duration is 2 ½ hours.
LEVEL OF DIFFICULTY
L1- Awareness : demonstrate familiarity with the topic in question.
· Can define it in overview terms
· Can related the relevance of the topic to business activities
L2- Knowledge: This builds upon awareness
· Able to explain the topic
· Describe inter-relationships between component part
· Describe process, theories and judgments issues
L3- Skill: This build upon knowledge.
· Able to apply knowledge to real world situation.
NOTE:
Lecturer + tutorial 14 weeks
Revision 1 week
Final term examination 3 weeks
REFERENCES:
No main references.
Additional references:
• Johnson Pang (1998), Banking and Finance in Malaysia, Federal Publications Sdn Bhd.
• Sistem Bank di Malaysia (1999), Bank Negara Malaysia
• Pang J. and Savarimuthu N.g (1997), Banking in Malaysia, Petaling Jaya: Longman
• Sudin Harun and Bala Shanmugan (1997), Islamic Banking Concepts and Applications, Kuala Lumpur: Pelanduk Publications
• Mishkin F.S (1998), The Economics of Money, banking and Financial Markets, 5th edition Reading: Addison-Wesley
• Josef Eby Ruin (2004), Financial and Banking Services In Malaysia,1st Ed: Leeds Publications.
• Josef Eby Ruin (2004), Financial and Banking Services In Malaysia,1st Ed: Leeds Publications.
