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 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

At the end of the course the students will:

- know the structure of the financial system, its functions, and the main financial intermediaries, financial markets and financial products and services

- know the objectives and the working of financial regulation and monetary policy

- know the banking, insurance and investment sectors

- apply the learned methodologies to calculate risk and return of financial instruments: bonds, stocks and derivatives

- apply the learned methodologies in portfolio management

- apply the learned methodologies to analyse and evaluate fiancial intermediaries economic equilibria: liquidity, profitability, solvibility

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 and Exercises.

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.

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

Lessons start in the first semester.

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

The final exam is a theoretical and practical assignment. There are two theoretical open questions and two exercises. Time allowed is 80'.

Students who fail the exam can repeat it with no limitations.

However if the final score in below 16/30 the exam cannot be repeated in the next date.

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 different topics learned at lessons.

He will also evaluate if the terminology used by the student is appropriate, if the time assigned to the different answers is balanced, if the trade-off between a complete and in-depth analysis is well managed . The exercises will be evaluated on the basis of the choice of the right formula, the corret calculation and the interpretation of the results.