ECONOMICS OF FINANCIAL INTERMEDIARIES
The course will intend to growth the financial skills of the students; more specifically, the aim is to identify the different components of the financial system and the financial drivers for the international firms. The course will start with the framework of the financial system (i.e. institutions, markets, and instruments), then focus on management of the financial institutions (i.e. colleting of funds and provision of funds; risk management; supervisory activity; banking activity, asset management, insurance activity), and, finally, analyse 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 of understanding the issues related to the functioning of the financial system and of its components. Furthermore, the student has to be able to identify and to understand how the financial system supports the firms, especially international enterprises, in order 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 of the services from the point of view of risk and return. In particular, the student has to able to identify the costs of services offered by the financial institutions from the firm's point of view.
Making judgements: after the analysis of the functioning of the financial system, the student will be able to independently estimate the proposals of the financial institutions in order 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 has to clearly, concisely, and exhaustively answer to both the written questions and the oral test questions.
Lifelong learning skills: the student has to demonstrate a good learning ability by deepening his/her knowledge on relevant bibliographic references of the financial system.
The course requires that the students have learned the basic contents of the business economics.
The main arguments will be: the relationship between the financial system and the economic system; the theories on financial intermediation; the main risks of the financial intermediation; the financial instruments; the financial markets; the banking activity, the asset management, and the insurance activity; the regulation on financial system: policies and authorities; the innovation of financial regulation and the supervisory activity on the financial system; the monetary policy and the supervision on credit market; the financial structure of the firm; the ways of financing for international firms.
The course will be organized in lectures, exercises on financial instruments and on the financial structure of the company; insights on the ways of funding for international firms will be provided in Blended mode too.
Nadotti, Porzio, Previati (2017), Economia degli intermediari finanziari, McGraw-Hill.
Other materials will be provided by the professor.
The exam consists of a written test and an oral test. The written test consists of 4/6 open questions on the topics of the program.
The content of the course can be divided into several blocks of lessons whose duration depends on the level of preparation of students and their familiarity with the concepts of business economics.
On average, the course is structured as follows:
I module – (12 h) – The financial system
Analysis of the role of financial system within the economic system and of financial needs of householders (investments decisions) and of firms (financing decisions). Analysis of financial markets and of financial institutions. Analysis of the financial instruments and of their main markets
II module – (12 h) – The financial institutions
Analysis of the main financial institutions (banking business, asset management, and insurance business) and of the main risks undertaken by the financial institutions.
III module – (12 h) – The supervision on the financial system
Analysis of the legislation on financial system and of the supervision on financial institutions. The role of monetary policy, the interest rate, and the costs of financial services and of instruments.
IV module – (12 h) – Financing for firms
Analysis of the investment decisions and of financing decisions. The analysis of a firm’s financial structure. Discussion on the issues related to the financing of the international firms.