Economics of Financial Intermediaries
A.Y. 2024/2025
Learning objectives
On successful completion of this course, students should be able to understand the core principles of banking and finance, which are essential to the real economy: 1) understand how financial intermediaries work, what are the main drivers; 2) understand the basic issues involved in how financial markets and intermediaries finance the real economy 3) understand the drivers of financial crisis. Furthermore, they should be able to complement law topics with a financial approach, using appropriate financial notions and language.
Expected learning outcomes
- Knowledge and understanding: on successful completion of this course, students should be able to complement legal topics with the knowledge of financial markets and intermediaries. On this note both general and specific topics are provided: the framework where financial intermediaries - banks, financial firms, money and portfolio managers, investment and index funds, pension funds, insurance companies - operate; regulation and supervision.
- Applying knowledge and understanding: students should be able to apply theoretical knowledge to case studies and practical examples related to the main technical features of banks and financial intermediaries.
- Making judgements: active learning methodology helps students to learn the ability to identify and use data to formulate responses to well-defined financial problems.
- Communication: the course encourages students to communicate about their understanding, skills and activities encouraging guided class discussion and through case studies, and problem sets.
- Lifelong learning skills: on successful completion of this class, students can appreciate the core principles of banking and finance, then examine these models with real-world scenarios. Empirical applications of themes help students develop essential critical-thinking and problem-solving skills, preparing them for future legal careers in business and finance areas.
- Applying knowledge and understanding: students should be able to apply theoretical knowledge to case studies and practical examples related to the main technical features of banks and financial intermediaries.
- Making judgements: active learning methodology helps students to learn the ability to identify and use data to formulate responses to well-defined financial problems.
- Communication: the course encourages students to communicate about their understanding, skills and activities encouraging guided class discussion and through case studies, and problem sets.
- Lifelong learning skills: on successful completion of this class, students can appreciate the core principles of banking and finance, then examine these models with real-world scenarios. Empirical applications of themes help students develop essential critical-thinking and problem-solving skills, preparing them for future legal careers in business and finance areas.
Lesson period: Second semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
Second semester
Course syllabus
The course aims to introduce students to the functioning of the financial system, within which households and firms interact through financial intermediaries. Specifically, the course focuses on the investment needs of household savings and the financing needs of business investments.
From a conceptual perspective, the course can be divided into two parts:
The first part is dedicated to illustrating the functions and structure of the financial system, with a taxonomic approach aimed at familiarizing students with financial terminology and instruments. The following topics will be covered:
o financial intermediation and the configuration of the system in terms of characteristics and structure;
o the relationship between real and financial variables;
o the analysis of the country's financial structure through the study of intersectoral financial balances and the composition of financial portfolios across different sectors;
o monetary policy and the payment system.
Particular attention will be given to the role of banks, analyzed both from a theoretical-economic and operational perspective, through the study of their balance sheets.
The second part focuses on financial instruments and the markets where they are traded. In a simple and intuitive way, students will be introduced to the economic characteristics - risk and return - of bonds (with and without coupons), equity securities, and investment portfolios.
Throughout the course, the main regulations governing the financial system will also be presented.
The topics covered can be summarized as follows:
1. The financial system
2. The function of intermediation
3. The function of monetary policy transmission
4. Banks and their balance sheets
5. The economic characteristics of financial instruments
6. Financial instruments: bonds, equities, and portfolios
7. Regulation
Theoretical and institutional analysis will be supplemented, where possible, with empirical insights focused on the Italian, European, and international contexts.
From a conceptual perspective, the course can be divided into two parts:
The first part is dedicated to illustrating the functions and structure of the financial system, with a taxonomic approach aimed at familiarizing students with financial terminology and instruments. The following topics will be covered:
o financial intermediation and the configuration of the system in terms of characteristics and structure;
o the relationship between real and financial variables;
o the analysis of the country's financial structure through the study of intersectoral financial balances and the composition of financial portfolios across different sectors;
o monetary policy and the payment system.
Particular attention will be given to the role of banks, analyzed both from a theoretical-economic and operational perspective, through the study of their balance sheets.
The second part focuses on financial instruments and the markets where they are traded. In a simple and intuitive way, students will be introduced to the economic characteristics - risk and return - of bonds (with and without coupons), equity securities, and investment portfolios.
Throughout the course, the main regulations governing the financial system will also be presented.
The topics covered can be summarized as follows:
1. The financial system
2. The function of intermediation
3. The function of monetary policy transmission
4. Banks and their balance sheets
5. The economic characteristics of financial instruments
6. Financial instruments: bonds, equities, and portfolios
7. Regulation
Theoretical and institutional analysis will be supplemented, where possible, with empirical insights focused on the Italian, European, and international contexts.
Teaching methods
Lectures accompanied by the use of PowerPoint presentations. Given the relevance of the topics covered, the teaching may be supplemented with case study discussions, data analysis, or practitioners' participation.
Teaching Resources
Ferrari A., Gualandri E., Landi A., Venturelli V., Vezzani P., "Il sistema finanziario: funzioni, mercati e intermediari", Giappichelli Editore - VIII edizione
Ferrari A., Gualandri E., Landi A., Venturelli V., Vezzani P., "Strumenti, prodotti e servizi finanziari
Bisogni di investimento, finanziamento, pagamento e gestione dei rischi", Giappichelli Editore - III edizione
Saunders et al. "Economia degli intermediari finanziari", McGraw/Hill/ultima edizione
Given the relevance of the topics covered, the textbook may be supplemented with examples and additional readings recommended by the instructor.
All course support materials will be regularly uploaded to the ARIEL platform.
Ferrari A., Gualandri E., Landi A., Venturelli V., Vezzani P., "Strumenti, prodotti e servizi finanziari
Bisogni di investimento, finanziamento, pagamento e gestione dei rischi", Giappichelli Editore - III edizione
Saunders et al. "Economia degli intermediari finanziari", McGraw/Hill/ultima edizione
Given the relevance of the topics covered, the textbook may be supplemented with examples and additional readings recommended by the instructor.
All course support materials will be regularly uploaded to the ARIEL platform.
Assessment methods and Criteria
The exam aims to verify the achievement of the following learning objectives:
1. Knowledge of the main theoretical concepts.
2. Ability to analyze economic, financial, and business phenomena through simple exercises.
The exam consists of a written test covering the entire syllabus.
Exam Structure:
A first part of 16 multiple-choice questions (with 5 possible answers, only one of which is correct), to be completed within 45 minutes; Each correct answer is worth 1.5 points, for a total of 24 points; There are no penalties for unanswered or incorrect answers.
A second part based on three open-ended questions or exercises, each worth 3 points, for a total of 9 points. Each question has a time limit of 15 minutes, for a total of 45 minutes.
The total exam duration is therefore 1 hour and 30 minutes, with a maximum achievable score of 33 points.
The minimum passing score is 18 points.
The final exam result will be uploaded to the electronic register, and if the student does not report any intention to reject the grade within one week, the grade will be officially recorded.
If the exam result is insufficient, it can be retaken in any subsequent session.
1. Knowledge of the main theoretical concepts.
2. Ability to analyze economic, financial, and business phenomena through simple exercises.
The exam consists of a written test covering the entire syllabus.
Exam Structure:
A first part of 16 multiple-choice questions (with 5 possible answers, only one of which is correct), to be completed within 45 minutes; Each correct answer is worth 1.5 points, for a total of 24 points; There are no penalties for unanswered or incorrect answers.
A second part based on three open-ended questions or exercises, each worth 3 points, for a total of 9 points. Each question has a time limit of 15 minutes, for a total of 45 minutes.
The total exam duration is therefore 1 hour and 30 minutes, with a maximum achievable score of 33 points.
The minimum passing score is 18 points.
The final exam result will be uploaded to the electronic register, and if the student does not report any intention to reject the grade within one week, the grade will be officially recorded.
If the exam result is insufficient, it can be retaken in any subsequent session.
SECS-P/11 - FINANCIAL MARKETS AND INSTITUTIONS - University credits: 6
Lessons: 42 hours
Professor:
Brighi Paola
Shifts:
Turno
Professor:
Brighi PaolaProfessor(s)