FINANCIAL MARKETS AND INSTITUTIONS - CLEA
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.
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
The course aims to illustrate the structure and functioning of the financial system: the characteristics of financial instruments (investment, financing and risk management instruments) that are offered to households and businesses, as well as the types, role and functioning of financial intermediaries and financial markets. At the end of the course, students: - will know the structure of the financial system, the main types of financial intermediaries, the characteristics of the main financial instruments, the functioning of financial markets, the supervisory architecture on the financial system in Europe and in Italy, the strategy and operational structure of the European monetary policy; - will be able to measure the return and risk of the main financial instruments; - will be able to measure the result of a transaction in derivative instruments; - will be able to build foreign exchange transactions; - will be able to measure banks' exposure to credit, interest, market, liquidity and leverage risks; - will be able to analyze the financial statement of the main financial intermediaries, through the calculation of appropriate ratios.
Lectures and seminars
- 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
Anthony Saunders and Marcia Cornett, (2018), "Financial Markets and Institutions", Mc-Graw-Hill, 7th Edition.ns, MCGraw- Hill, 2015, 6th edition.
Ricevimento: Thursday, 14.40. Possible changes will be communicated through the Aulaweb portal.
FRANCESCA QUERCI (President)
MARCO DI ANTONIO
Lectures and seminars
Lessons begin February 2020.
L'orario di tutti gli insegnamenti è consultabile su EasyAcademy.
Written examination, in English.
The students who fail the exam can repeat it with no limitations.