FINANCIAL MARKETS AND INSTITUTIONS
Learning outcomes of the course unit
The course aims to illustrate the structural characteristics of a financial system, providing the conceptual framework in order to understand the role of financial institutions in the economic system. At the end of the course students will have acquired:
1) the knowledge necessary to understand the features and the development of the financial system, the aims and scope of financial supervision, the role and the economics of financial intermediaries, the characteristics of financial needs and of financial instruments;
2) the ability to apply knowledge in order to evaluate financial instruments used for investments, financial needs, payments and risk management;
3) the ability to judge the suitability of a financial system to the real problems of the economic system, even from a social and ethical point of view, and to choose the proper instruments to satisfy financial needs;
4) the ability to use a correct technical language;
5) learning skills through problem solving method.
Students are suggested to attend first year lessons before attending this course
Course contents summary
The course analyzes the role and the efficiency conditions of a financial system in order to evaluate the structure and the evolution of Italian financial system. In this perspective are analyzed financial needs, instruments, markets, institutions, authorities and supervision policies of the financial system.
1) The structure and role of the financial system; 2) The demand for financial services; 3) Valuation of financial instruments; 4) The payment system; 5) Financial balances and financial intermediation; 6) Financial markets and the conditions of financial market efficiency; 7) Market imperfections and the role of financial institutions 8) Characteristics and role of banks; 9) Non-banking financial institutions; 10) Insurance companies; 11) Financial system supervision: objectives and authorities; 12) The tools for supervision of the financial system.
"Economia degli intermediari finanziari", for courses held by Paola Schwizer, Elisa Bocchialini, Lucia Poletti, McGraw-Hill Education Create, 2017.
The textbook will be available in September 2017.
Knowledge and understanding: traditional lessons. The main topics of the course will be pointed out during lessons.
Applying knowledge and understanding: exercises.
Making judgments: students will be led to judge strengths and weaknesses of different financial instruments and intermediation models.
Learning skills: every topic will be discussed beginning from the illustration of the problem and then analyzing the solution.
Communication skills: the meaning of each term used by the financial community will be explained.
Assessment methods and criteria
Written exam. Maximum mark: 30. Pass mark: 18.
The knowledge of the main topics of the course will be assessed through 6 multiple-choice questions for up to 2 marks each and 1 open question for up to 6 marks.
The knowledge of the other topics of the course will be assessed through 3 multiple-choice questions for up to 1 mark each and one open question for up to 6 marks.
Applying knowledge will be assessed through 3 exercises for up to 1 mark each.
Communication skills, making judgments and learning skills will be assessed analyzing the answers to the 2 open questions cited above. The exam will also consider possible intermediate tests taken during the course.