Economics of Financial Intermediaries
A.Y. 2024/2025
Learning objectives
The aim of the course is to provide participants with all the relevant information for a proper understanding of the different functions performed by financial markets and financial institutions. The course will analyze the financial system with an institutional approach, examining both the architecture of different financial institutions and the relation between this architecture and the financial needs of the real economy.
Expected learning outcomes
After successful completion of the course students are expected to be able to navigate current events in financial markets (e.g. central bank actions, capital flows, markets behavior, bubble formation). The course will place a strong emphasis on developing the students' ability to identify critical issues in the market and their institutional and regulatory ramifications.
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 PaolaEducational website(s)
Professor(s)