ECONOMICS & MANAGEMENT OF FINANCIAL INTERMEDIARIES
The course deals with the financial management of financial intermediaries. The course will be developed with an initial introduction to some relevant aspects concerning the role of financial intermediaries, markets and financial instruments. Specifically, the course will provide the conceptual framework to understand how the (international and domestic) financial system works both from a qualitative and a quantitative point of view. The management and operational rationale underlying the different business areas of banks and other specialized intermediaries (funding, lending, risk management, regulation, securities trading) will also be discussed.
The course is aimed at students in the three-years course and requires that students have learned the basic content of business economics. In order to maximize learning content students should have a good knowledge of accounting and management of the arguments as to address some basic topics of the syllabus.
The financial system and the real economy. Theories of financial intermediation. Risk management in financial intermediation. Tradable and not tradable financial assets. Financial markets. Corporate credit and financial intermediaries. Financial investments. Insurance companies (life end non-life). The supervision of financial system: policy and authorities. Financial innovations. Retail investor protection rules. Monetary policy and credit supply.
The course will be organized in lectures also with the support of slides. The course will follow the setting of the textbook; some topics will be discussed with case studies or additional documents. Speech of professional managers may be included in the course.
Nadotti L., Porzio C. Previati D., Economia degli Intermediari Finanziari, last edition, Mc Graw Hill
The final exam consists of a written test of six questions. The candidate will be judged on the use of appropriate technical language, the independence of judgment and deepening of the topics.
By the end of the module, students will acquire a number of abilities:
• Knowledge and understanding of financial markets, the optimal use of financial instruments by economic operators, the financial intermediary management and the main legal provisions.
• Knowledge and practical skills necessary to measure the sectoral financial balances; to identify and quantify major financial risk drivers for financial intermediaries; to understand the use of derivative instruments (hedging vs speculating); to assess solvency, efficiency and profitability of financial intermediaries; to estimate the present value of financial instruments.
• Understanding of the content of research reports produced by Supervisory Authorities and annual reports of financial intermediaries; the financial market behavior; the effects of the decisions of the ECB on the financial system; the firms’ capital structure decisions; the investment policy of the financial intermediaries.
• Appropriate technical terminology to communicate and interact with interlocutors that present heterogeneous knowledge on the topics covered by the course.
• Tools necessary for enhancing their learning skills in the financial sector and continue their studies in finance.