Banking and Financial Intermediation

Introduction:

Banking and financial intermediation represent the process through which financial institutions connect those who have surplus funds with those who require financing. It is the mechanism that ensures the efficient flow of money in the economy, supporting investments, trade, and development. This program introduces participants to the concept of financial intermediation, its role in the banking sector, and the essential systems, products, and regulations that shape this vital field.

Program Objectives:

By the end of this program, participants will be able to:

 

• Define the concept and importance of financial intermediation in the economy.

• Identify the functions and operations of banks and financial institutions.

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• Recognize the key financial products and instruments used in intermediation.

• Understand the regulatory frameworks and risk management practices in banking.

• Explore current issues and future trends in financial intermediation.

Targeted Audience:

 

• Banking professionals.

• Financial managers and officers.

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• Risk and compliance specialists.

• Investors and financial service providers.

• Employees in financial institutions seeking to enhance their knowledge.

Program Outline:

Unit 1:

Fundamentals of Financial Intermediation:

• Definition and meaning of financial intermediation.

• Importance in economic growth and development.

• Types of financial intermediaries.

• Functions of intermediation.

• Relationship between savings and investment.

Unit 2:

Banking Systems and Operations:

 

• Overview of banking systems.

• Types of banks and their functions.

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• Deposit and lending activities.

• Payment and settlement processes.

• Role of central banks in intermediation.

Unit 3:

Financial Products and Instruments:

• Main types of credit and loan products.

• Securities and capital market instruments.

• Bonds and equities.

• Derivatives in financial intermediation.

• Digital and fintech-based products.

Unit 4:

Regulation and Risk Management:

 

• Importance of financial regulation.

• Prudential standards and capital adequacy.

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• Risk management practices in banking.

• Compliance and anti-money laundering measures.

• Governance and transparency in financial institutions.

Unit 5:

Ethics and Governance in Financial Intermediation:

• The role of ethics in maintaining trust and integrity in financial services.

• Governance frameworks for financial intermediaries to ensure accountability.

• Preventing conflicts of interest and promoting transparency.

• Establishing codes of conduct for ethical decision-making in financial operations.

• Strategies for aligning organizational goals with ethical and governance standards.