OVERVIEW

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.

AIMS AND CONTENT

LEARNING OUTCOMES

The course aims to provide students with a basic knowledge of the financial system.  More specifically, the course covers topics such as the functions performed by the financial sector, the features of financial instruments and the main characteristics of financial institutions and markets. Students will understand how the financial sector meets the financial needs of households and businesses, such as investing, financing, making payments and/or managing risks.

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 following exams: 

• Business Adminstration;
• Financial mathematics.

TEACHING METHODS

The course entails different teaching methods such as Lectures, Case Studies, Seminars and Workshop with Professionals, Assignments using Aulaweb platform, Auto evaluation tests.

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, Marcia Cornett and Otgo Erhemjamts, (2022), "Financial Markets and Institutions", 8th Edition, McGraw-Hill.

TEACHERS AND EXAM BOARD

Exam Board

FRANCESCA QUERCI (President)

BARBARA ALEMANNI

MARCO DI ANTONIO

LAURA NIERI

LESSONS

LESSONS START

Lessons start in the second semester. 

Class schedule

FINANCIAL MARKETS AND INSTITUTIONS A

EXAMS

EXAM DESCRIPTION

The final exam is a theoretical and practical assignment.

Students who attend lectures regularly may choose the 'continuos valuation method' that implies 3-4 assignments and an intermediate exam.

ASSESSMENT METHODS

The assignment includes multiple-choice questions; open questions; exercises and problems.

Exam schedule

FURTHER INFORMATION

If the final score is below 16/30 the exam cannot be repeated in the next date.