This course deals with the functioning of the financial system including the banking system and the capital markets system. It discusses the modern financial products and services provided by and within these systems, the main building blocks that comprise them, and the objectives, structure and effectiveness of the rules that apply to them, in the pursuit of financial stability and adequate protection of depositors and investors. In banking, the accent will be on the transactional aspects of banking, on popular banking products, on money, and on payments. In the capital markets, the accent is on modern capital market products (including shares, bonds, and derivatives), and their holding, issuing, and trading. As to the regulatory response, the course goes into the main techniques of financial regulation, the differences between banking and capital market activity, and the rules that govern financial systems in the EU, in the UK and in the US, including the capital and solvency requirements put in place after the 2008/9 financial crisis and the rules that govern the modern primary and secondary capital markets. This course will also examine the latest developments in this area and discuss emerging topics like financial technologies (‘FinTech’) and sustainable finance.