Learning objectives
The course seeks to offer a method for understanding the functions and evolutionary dynamics of the financial system in relation to the demands of investors, businesses, and institutions, as well as the evolution of regulation and technology. By the end of the course, students will have acquired:
The necessary knowledge to understand the distinctive elements that characterize financial instruments, financial markets, banks, and other financial institutions within the economic system.
The ability to apply the acquired knowledge to interpret and evaluate the behavior of actors operating within the financial system (investors, financial intermediaries, financial service providers, and regulatory authorities), considering the regulatory frameworks of the Italian context.
The ability to critically assess the functionality of the financial system within the economy as it performs its roles.
The ability to use appropriate technical language when discussing topics covered in the course.
The ability to learn, meaning to apply the knowledge gained during the course.
Prerequisites
None, except for any prerequisites established by the Department. In any case, students are advised to have completed the first-year courses.
Course unit content
The course aims to provide foundational knowledge on markets, financial instruments, and intermediaries. It will analyze the components that make up the financial system, including the regulatory and supervisory frameworks that characterize it, particularly at the European level and its evolutions following recent crises. The objective is to examine the structural and functional aspects of financial markets, the various types of financial instruments in relation to users' needs, and the different types of financial intermediaries from both operational and managerial perspectives, with particular attention to the risks they bear. The key perspective on financial intermediaries is their continuous evolution driven by ongoing innovation, supporting the real economy and contributing to the development of the country and its citizens.
Full programme
Structure and Functions of the Financial System
Financial Infrastructures
Financial and Credit Instruments: Technical Characteristics and Evaluation Criteria
Financial Markets and Efficiency Conditions
Securities Intermediaries and the Role of Institutional Investors
Banks - Operational and Managerial Characteristics
Non-Bank Credit Intermediaries
Insurance Intermediaries
Financial Regulation and Supervision
Bibliography
Gli strumenti finanziari e creditizi, a cura di Tagliavini G., Poletti L., Ronchini B., quarta edizione, McGraw-Hill, 2022.
Economia del sistema finanziario, a cura di Bocchialini E., Poletti L., Ronchini B., Tagliavini G., Giappichelli, 2021
Teaching methods
Acquisition of Knowledge: Lectures. The lectures will cover the essential topics required to pass the exam.
Acquisition of the Ability to Apply Knowledge: Practical exercises.
Acquisition of Independent Judgment: Students will be encouraged to identify the strengths and weaknesses of financial instruments and intermediation models throughout the course.
Acquisition of Learning Skills: Each topic will begin with an illustration of the problem to be solved, followed by a critical analysis of the solutions adopted.
Acquisition of Technical Language: The meaning of terms commonly used in the financial community will be explained during the course.
Assessment methods and criteria
Final Exam: The final exam is written and lasts one hour. Knowledge acquisition is assessed through:
7 questions (in the form of exercises, multiple-choice questions, true/false), each worth 1 point.
6 questions (in the form of exercises, multiple-choice, and completion questions), each worth 2 points.
2 open-ended questions, each worth up to 6 points.
Honors will be awarded if the maximum score is achieved on every question.
The results of the official exams will be published on Esse3 within 8 days following the exam.
The ability to apply knowledge is specifically verified through the exercises administered. The acquisition of knowledge, the ability to communicate using appropriate technical language, independent judgment, and learning ability are mainly assessed through the analysis of responses to open-ended and multiple-choice questions. The ability to communicate using appropriate technical language, independent judgment, and learning ability will be verified through the analysis of responses to open-ended questions.
Other information
Please note: The course slides complement but do not replace the textbooks in any way.
Midterm Exams: In lieu of the final exam, the instructor may at their discretion schedule several written midterm exams during the course. The structure of the midterm exams may differ from that of the official exams and, if scheduled, will be announced on Elly.
During exams, students are allowed to use only an identification document and a black ink pen. The use of any aids, including notes and electronic devices (smartphones, smartwatches, tablets, etc.), is strictly prohibited.
