LEARNING OUTCOMES

The course introduces to the knowledge of financial intermediaries, covering the following issues: role of financial intermediation in the economic system, economic functions of financial intermediaries, theory of financial intermediation, regulation and supervision, financial intermediaries’ income statement and balance sheet, financial intermediaries’ risks, financial instruments, organisation of financial markets.

AIMS AND LEARNING OUTCOMES

The course examines the instruments and institutions that make up the financial system of the modern economy, such as bonds, stocks, derivatives, and the money market, as well as the role of banks in deposit and credit creation, insurance companies, asset management companies, etc.. Along the way, standard concepts and tools of financial analysis are covered, including the risk-return trade-off , the evaluation of financial instruments, the diversification of risk.

PREREQUISITES

Students are expected to have passed the exam of Business Adminstration.

They have also advised to have a thorough knowledge of Financial mathematics.

TEACHING METHODS

The course entails different teaching methods such as Lectures, Case Studies, Seminars and Workshop with Professionals.

In consideration of the current COVID-19 emergency, if restrictions persist and traditional face-to-face classrooms teaching is not be possible, blended learning methods will be adopted and the whole course will be available also online. More details will be provided to the students at the beginning of the semester via AulaWeb.

SYLLABUS/CONTENT

• INTRODUCTION AND OVERVIEW OF FINANCIAL MARKETS
• SECURITIES MARKETS
  • Money Markets
  • Bond Markets
  • Mortgage Markets
  • Stock Markets
  • Foreign Exchange Markets
  • Derivative Securities Markets
• COMMERCIAL BANKS
  • Commercial Banks: Industry Overview
  • Commercial Banks’ Financial Statements and Analysis
  • Regulation of Commercial Banks
• OTHER FINANCIAL INSTITUTIONS
  • Other Lending Institutions: Savings Institutions, Credit Unions, and Finance Companies
  • Insurance Companies
  • Securities Firms and Investment Banks
  • Investment Companies
  • Pension Funds
• RISK MANAGEMENT IN FINANCIAL INSTITUTIONS
  • Types of Risks Incurred by Financial Institutions
  • Managing Credit Risk on the Balance Sheet
  • Managing Liquidity Risk on the Balance Sheet
  • Managing Interest Rate Risk and Insolvency Risk on the Balance Sheet
  • Managing Risk off the Balance Sheet with Derivative Securities
  • Managing Risk off the Balance Sheet with Loan Sales and Securitization

RECOMMENDED READING/BIBLIOGRAPHY

Anthony Saunders and Marcia Cornett, (2018), "Financial Markets and Institutions", Mc-Graw-Hill, 7th Edition.ns, MCGraw- Hill, 2015, 6th edition.