ECONOMICS OF FINANCIAL INTERMEDIARIES
The course will intend to grow the students' financial skills; more specifically, the aim is to identify the different components of the financial system and the financial drivers for firms. The course will start with the framework of the financial system (i.e., institutions, markets, and instruments). Then, it focuses on the management of the financial institutions (i.e., collection of funds and provision of funds, risk management, supervisory activity, banking activity, asset management, and insurance activity). Finally, it analyses the support of the financial system to the firms (i.e., financial structure and financing decisions).
The learning outcomes of the course can be as follows:
Knowledge and understanding: the student has to show understanding of the issues related to the financial system's functioning and its components. Furthermore, the student must identify and understand how the financial system supports the firms to reach the best mix between debt and equity.
Applying knowledge and understanding: at the end of the course, the student has to be able to identify the characteristics of the financial instruments and the services from the point of view of risk and return. In particular, the student must recognize the costs of services offered by the financial institutions from the firm's point of view.
Making judgments: after the analysis of the functioning of the financial system, the student will be able to independently estimate the financial institutions' proposals to identify the degree of compliance between the financial support and the investment decisions undertaken by the firm.
Communication: the student has to be able to explain in a simple way how to work the financial instruments. Furthermore, the student must concisely and exhaustively answer both the written and oral test questions.
Lifelong learning skills: the student must demonstrate a good learning ability by deepening their knowledge of relevant bibliographic references of the financial system.
The course requires that the students learn the essential business economics contents.
I module – (24 h) – The financial system
Analysis of the role of the financial system within the economic system and of financial needs of householders (investments decisions) and firms (financing decisions). Analysis of financial markets and financial institutions. Analysis of the financial instruments and their main markets
II module – (24 h) – The financial institutions
Analysis of the leading financial institutions (banking business, asset management, and insurance business) and the main risks undertaken by the financial institutions.
III module – (12 h) – The regulation and supervision of the financial system
Analysis of the legislation on the financial system and the supervision of financial institutions. The role of monetary policy, the interest rate, and the costs of financial services and instruments.
IV module – (12 h) – Financing for firms
Analysis of the investment decisions and financing decisions. The study of a firm's financial structure. Discussion on the issues related to the financing of the firms.
The course will be organized in lectures, exercises on financial instruments and the company's financial structure; insights on the ways of funding for firms will be provided in Blended mode too.
Nadotti, Porzio, Previati, Economia degli intermediari finanziari, McGraw-Hill.
The professor will provide other materials.
The exam consists of a written test and an oral examination. The written test consists of four open questions and two exercises. The vote, out of thirty, will be the result of the two tests.
Ongoing learning is also ascertained with exam simulations and exercises without grades.