OVERVIEW

The course analyses the economics of banks and the main drivers of change in the banking sector (globalisation, privatisation, changes in regulation, technology, changes in customer behaviors) and their impacts both on competition and market structure  and on bank's financial performance. After, the possibile responses to the competitive pressures are examined: strategic planning process, governance, business model, corporate and competitive strategy, organisational models, marketing policies, performance measurement and evaluation systems, internal control systems. A specific focus is given to risk management and capital management.

AIMS AND CONTENT

LEARNING OUTCOMES

The course analyses the main banks' activites, both core activities (lending, liquidity management, provision, securities management) and managerial activites (strategic planning, marketing, organisation, internal governance, risk management, performance evaluation). Students will know the main aspects of bank regulation and how to reach and maintain the economic equlibria: profitability, liquidity, solvency.

AIMS AND LEARNING OUTCOMES

The course aims at giving the students theoretical and practical knowledge about managerial and governance functions in banking. The studenst wil learn the framework to interpretate environmental trends, their impact on bank performance, the most appropriate strategic and organisational reactions. By analyzing case studies, students will also improve their problem solving capabilities.

At the end of the course the students will:

- know the basic of bank management: functions, regulation, products, business areas, economic equlibria, risks

- know the structure and the evolutionary trends of the banking system, as long as the main environmental trends that affect the sector and the performance of banks 

- know the principles and theoretical models in the fields of bank strategy, organisation, marketing, risk management, performance evaluation
- know the main bank practices in the above mentioned fields
- solve the main managerial problems in the above mentioned fields
- analyse and evaluate economic equilibria of banks
- analyse and evaluate profitability, liquidity, risks, capital adequacy
- measuring bank performance 

PREREQUISITES

Basic knowledge about economics and management of enterprises

TEACHING METHODS

Lessons by the teacher and by practitioners, case studies, reading of the textbooks.

Students who have valid certification of physical or learning disabilities  and who wish to discuss possible accommodations or other circumstances regarding lectures, coursework and exams, should speak with the teacher

SYLLABUS/CONTENT

FOR ATTENDING STUDENTS

PART I: Economics of banking

- regulation

- monetary function

- lending activity: credit risk evaluation, credit risk management and internal rating systems

- other activites: provision; securitises trading, investment and services; asset and liability management

- business areas and products

- risks

PART II: Changes, Challenges and Strategies

- Megatrend and drivers of change: globalisation, regulation, privatisation, technology, changing in customers’ behaviour, ESG
- Their impacts on: i) competition and market’s structure; ii) financial performance
- The strategic planning process: elements, phases, actors, content, evolution
- A framework for strategy formulation: corporate, competitive and functional strategies
- Business models in banking: importance, taxonomy, innovation
- Shareholder management (value based management) versus stakeholder management (ESG)
- Analysis of case studies

- Marketing policies and new frontiers in customer management (customer journey, big data and analytics)
- Performance measurement and evaluation systems
- Risk management and capital management systems
- Internal control systems

FOR NON ATTENDING STUDENTS

The program is the entire content of the textbook (Resti-Sironi)

RECOMMENDED READING/BIBLIOGRAPHY

A.Resti-A.Sironi, Risk management and shareholders’ value in banking, Wiley, 2007, Part V and VI

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

The course is placed in the second semester; it starts in february 2025 and ends in may 2025

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

Written examination; in english; 4 questions; 80' time.

Questions are open (about theoretical aspects), exercises, incident/case studies.

Students who have valid certification of disability or Specific Learning Desorders (DSA) on file with the University may request the use of compensatory measures during the exams (e.g. additional time, concept maps, modifications in the written/oral mode).

ASSESSMENT METHODS

The teacher will evaluate the knowledge of the theoretical framework, models and principles learned at lessons, and the stidents' skills in solving problems and exercises.

FURTHER INFORMATION

No further information