Financial Institutions and Markets, 2/e emphasizes a functional focus on financial intermediaries and markets such as government securities, mortgage, corporate debt, equity markets, derivatives, and market microstructure. Chapters cover liquidity and risk, regulation, and developing financial systems.

Table of Contents

PART I: PRINCIPLES; 1. Lending, payments and risk-trading; 2. The financial system and its technology; 3. Efficiency, stability, and government intervention; 4. Interest rates, exchange rates, and security prices; PART II: FINANCIAL INTERMEDIARIES; 5. Understanding financial intermediaries; 6. What is a bank?; 7. The banking industry; 8. Payments and foreign exchange; 9. Insurance; 10. Pension funds and mutual funds; PART III: FINANCIAL MARKETS; 11. Understanding financial markets; 12. The market for government securities; 13. The mortgage market; 14. The corporate debt market; 15. The equity market; 16. Derivative instruments; 17. Derivative markets; 18. Exchanges, trading systems, and infrastructure; PART IV: REGULATION, STABILITY AND DEVELOPMENT; 19. Managing liquidity and risk; 20. Bank safety and regulation; 21. Security market stability and regulation; 22. Developing financial systems