Course Description:

This course provides a comprehensive overview of the financial system and its vital role in the functioning of the macroeconomy, with special emphasis on the Bahamian financial sector. Students will explore the structure, functions, and interrelationships of various financial institutions, understand the development and regulation of financial services, and evaluate the impact of financial institutions on economic growth and social development. The course also introduces students to careers in the financial services industry and integrates practical learning through simulations and site visits, including The Banking Game.

 

Course Objectives:

Upon successful completion of this course, students will be able to:

• Understand the structure and function of the financial system and its influence on economic activity.

• Differentiate among various financial institutions and their specialized services.

• Analyze the role of monetary policy and financial regulation in economic stability.

• Evaluate the historical evolution and contemporary relevance of financial services in The Bahamas and globally.

• Identify the key players, instruments, and markets within the financial services industry.

• Examine the social and economic contributions of financial institutions beyond profit-making.

• Develop communication and teamwork skills through group projects and simulation exercises.

• Explore career pathways and emerging trends in the financial services industry.

 

Course Learning Outcomes:

By the end of this course, students will be able to:

• Explain how the financial system supports macroeconomic stability and development.

• Identify and describe the key types of financial institutions and their functions.

• Assess the regulatory framework governing financial institutions in The Bahamas and internationally.

• Describe the functions of money and capital markets and their relationship to financial institutions.

• Analyze the impact of financial services on business, government, and society.

• Apply knowledge through group simulations such as The Banking Game and field exercises.

• Demonstrate a basic understanding of career roles and technological tools in the financial services sector.

• Critically reflect on the broader societal responsibilities of financial institutions.

 

Recommended Course Materials:

• Core Textbook: Financial Markets and Institutions by Frederic S. Mishkin & Stanley Eakins (or a Caribbean-focused equivalent)

• Supplementary Readings:

  • Reports and publications from the Central Bank of The Bahamas

  • Bahamas Financial Services Board (BFSB) and Securities Commission publications

  • Online resources such as Investopedia, IMF, BIS, and IDB databases

• Instructor handouts and current events articles related to local and international financial developments

 

Course Content:

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1. The Financial System and the Macroeconomy

• Macroeconomic concepts and their relevance to the Bahamian economy

• The financial system’s role in economic development and stability

 

2. History and Development of Financial Services

• Financial services in ancient civilizations, Europe, the UK, and the USA

• The emergence of modern banking

• Evolution of the Bahamian financial services sector

 

3. Money and Monetary Systems

• History of money and the barter system

• Functions and properties of money

• Monetary policy and its economic implications

 

4. Overview of Money and Capital Markets

• Functions and structure of money and capital markets

• Government-owned financial institutions (GFIs)

• Institutional investment in financial markets

 

5. Regulation and Supervision

• Role of the Central Bank of The Bahamas

• Overview of regulatory bodies (e.g., SEC, Federal Reserve)

• Financial services compliance and ethics

 

6. Specialized Services of Financial Institutions

• Traditional and modern banking services

• Commercial bank management and operations

• Fintech and digital banking trends

 

7. Overview of Other Financial Institutions (OFIs)

• Savings and loan associations, credit unions, life and property insurance companies

• Mutual funds, pension funds, investment banks, finance companies

 

8. Financial Services and Social Responsibility

• Non-profit roles and community impact

• The role of the banker in society

 

9. Careers in Financial Services

• Career options and industry qualifications

• The role of technology and innovation in financial services

• Management challenges in a regulated industry

 

10. Practical Learning: Simulations and Field Exercises

• Participation in The Banking Game

• Site visits: Central Bank of The Bahamas, Securities Commission, Bahamas Mortgage Corporation, Bahamas Development Bank, Inter-American Development Bank (IDB)

 

Course Assessment & Evaluation:

• Class Participation and Attendance – 10%

• Midterm Examination – 30%

• Final Examination – 60%