OVERVIEW

The course introduces students to the banking sector and the role of banks within the financial system. It belongs to the Economics&Finance curriculum and to the scientific sector: Economic of Financial Intermediaries.

AIMS AND CONTENT

LEARNING OUTCOMES

The course introduces to the knowledge of banking, covering the main issues: role of banking in financial system, economic functions of banks, theory of the bank and financial intermediation, regulation and supervision, Basel 1,2 and 3 regime, capital and liquidity risk management, lending policies and products, provision policies and products, asset & liability management, profitability and risks, credit risk management, capital management, liquidity anagement, income statement and balance sheet.

AIMS AND LEARNING OUTCOMES

At the end of the teaching unit, the student will be able to:

- Describe the structure, functioning, and evolution of the banking system, basing on course materials and lectures.

- Explain the theories that justify the existence and usefulness of banks, with reference to the main theoretical models discussed in class.

- Identify objectives, contents, and tools of the main banking functions: lending, funding, treasury and finance, securities activities, monetary function, thanks to the theoretical principles explained by the techer and the exemples and case studies discussed in class

- Analyse banking regulation and assess its impact on bank management, basing on the regulatory references covered in the course and the exemples of their application to the management of banks.

- Evaluate the technical, economic, and market features of main banking products, through practical exercises.

- Assess the creditworthiness of a company requesting a loan, applying the credit analysis methodologies and techniques presented in class.

- Analyse and assess the economic equilibria and risks of banks, through the analysis of financial statements and risk indicators.

Dublin descriptors:

- Knowledge and understanding: acquire adequate knowledge and understanding of the nature of banks, their role in the financial system, their mechanisms and processes, economic and productive functions, economic equilibria, objectives and impacts of sector regulation, through thr study of teaching materials and class participation.

- Applying knowledge and understanding: apply acquired knowledge to the analysis and interpretation of the main issues in bank management and develop the ability to identify optimal choices, through exercises and case studies.

- Making judgements: use acquired knowledge to formulate independent judgements on the economic and managerial equilibria of banks, the quality of their policies and results, and the consistency of risk levels assumed, through the discussion of exemples and cases-studies.

- Communication skills: communicate clearly and unambiguously with both specialists and non-specialists, using the technical language of the discipline, through the study of the teching materials and class discussions.

- Learning skills: develop autonomous learning skills to deepen the main topics of the discipline in different professional contexts, thorugh the knowledge of information and bibliographic sources, websites, and databases.

PREREQUISITES

Basic knowledge of business administration and of the economics of financial intermediaries.

TEACHING METHODS

Lectures, including both theoretical content and practical exercises (simulations, numerical exercises, real case studies). Professionals from the sector may be invited to illustrate real-world applications of the concepts learned in class.

Students with certified disabilities, specific learning disorders (DSA), or special educational needs should contact both the teacher and the Department's disability contact person at the beginning of the course to agree on teaching and examination methods that, while respecting the objectives of the teaching unit, take into account individual learning needs and allow the use of compensatory tools.

Attendance is not compulsory.

SYLLABUS/CONTENT

Part I: NATURE AND FUNCTIONS OF BANKS

- The financial system (overview); alternative technologies for fund transfer: banks and markets

- Banking activity and the bank

- Theory of banking

- Economic functions of banks: deposit collection, financing the economy, monetary function

- Money, payment system and payment instruments

Part II: REGULATION

- Banking regulation and supervision: objectives, tools, evolution, current framework

- Capital regulation: objectives, contents, different versions (Basel 1,2,3), effects, critical issues

- Organisational regulation

- Banking sector regulation: from the 1936 banking law to the new banking act

- European Banking Union

Part III: PRODUCTIVE FUNCTIONS AND PRODUCTS

- Lending policies

- Creditworthiness assessment

- Credit risk management

- Lending products 

- Objectives and policies for funding

- Provision products 

- Banks' investments in securities

- Liquidity management and treasury management and instruments

- Interest rate risk and asset-liability management

Part IV: BALANCE SHEET AND ECONOMIC EQUILIBRIA

- Economic equilibria of banks: formation of economic results

- Banks' financial statements: rules, contents, and coordination of balance sheet indicators

- Economic equilibria of banks: risks

RECOMMENDED READING/BIBLIOGRAPHY

- R.Ruozi, Economia della banca, Milano, Egea, 2020.

- Tagliavini, Poletti, Ronchini, Strumenti finanziari e creditizi, 2022, Capitoli: 2, 3, 13, 14, 15 ,16, 17.

Possible variations and  integrations of the bibliography will be suggested in class

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

The teaching unit takes place in the first semester, from September 2025 to December 2025.

For the detailed timetable, please refer to the official course website: 

https://economia.unige.it/sites/economia.unige.it/files/2025-06/calendario%20didattico%20a.a.%2025-26%20Corsi%20di%20studio%20GE%20per%20%20CdD%204_6_2025_0.pdf

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

The exam is written and consists of four open questions on the topics covered in the programme, with a duration of 80 minutes. Some questions may require numerical exercises.

In exam sessions with three dates, in case of a serious failure (score below 16) in the first session, it is not possible to attend the second session. Students who withdraw from the exam may attend the next session.

There are no intermediate tests.

Students with certified disabilities or specific learning disorders (DSA) may request compensatory measures (e.g., extra time, concept maps, changes in written/oral modality) during the exam, following the procedure indicated in the University guidelines.

ASSESSMENT METHODS

The teacher will assess the students' knowledge about: structure and evolution of banking system; banking theories; objectives, content and tools of the main functions of the bank; banking regulation and its impacts on bank's management; technical and economic features of the main products of the bank; methodologies and tools for crediti worthiness assessment; economic equlibria and risks of the banks. 

The teacher will evaluate also the capacity of the student to apply knowledge so to analyse and solve managerial problems. In the case of numerical exercises, the student's ability to apply the appropriate formulas and perform calculations correctly, as well as to comment on the results, is assessed

The teacher will evaluate also clarity of exposition, correctness of terminology used, ability to logically structure the answer, ability to make connections between the different topics covered in the course, capacity to manage time so to appropriately balance completeness and depth of the answer. 

FURTHER INFORMATION

For non-attending students, the exam programme follows the content of the two textbooks listed in the 'Textbooks/Bibliography' section. The exam methods are the same as for attending students.