FINANCIAL MARKETS AND INSTITUTIONS

Degree course: 
Corso di First cycle degree in ECONOMICS AND MANAGEMENT
Academic year when starting the degree: 
2019/2020
Year: 
3
Academic year in which the course will be held: 
2021/2022
Course type: 
Compulsory subjects, characteristic of the class
Seat of the course: 
Varese - Università degli Studi dell'Insubria
Language: 
Italian
Credits: 
9
Period: 
Second semester
Standard lectures hours: 
60
Detail of lecture’s hours: 
Lesson (60 hours)
Requirements: 

Attending the course is easier for students with basic knowledge of management, micro and macro-economics, financial maths, private and commercial law.
Moreover, at the end of the course the student will be able to understand and use main financial technical terms. The student will be able to understand, summarize and critically evaluate specific literature and financial news on fundamental financial topics. The students will be able to evaluate risk and return of simple financial securities and understand main topics on the functioning of financial system (risks and performance drivers).

Final Examination: 
Orale

Final written test, which lasts an hour and a half, divided in 10 questions.
It is most important to demonstrate the ability to critically analyze the contents and make connections with economic context.

Assessment: 
Voto Finale

The course gives basic elements about the structure and the functioning of markets and financial intermediaries. Specific topics also relates to sctructure, activities, and operational tools of banking, insurance, and markets intermediaries, and basic elements for financial securities’ valuation as well. The course gives also basic information about financial instruments, banking and insurance contracts and financial market operations.
After attending the course, the student will be able to describe and analyze:
- different functions of financial markets and intermediaries and linkages among them;
- main differences among financial contracts (banking, insurance and pensions, and market instruments) and their linkage to families and firms’ financial needs;
- operating activities, revenues and costs for banks, insurance companies and other financial intermediaries (e.g., asset management firms, specialized financial and credit intermediaries);
- objectives and activities of regulation and supervision on financial intermediaries and markets.

Part I – The financial system: functions, intermediaries, markets, and regulation (40 hours, 6 CFU/ECTS)
1. Main functions of the financial system (8 hours)
2. Financial contracts and risks related to banking and financial intermediation (4 hours)
3. Intermediation function (12 hours)
4. Money and payment systems (2 hours)
5. Transmission mechanism of monetary policy (some remarks) (2 hours)
6. Financial markets: some definitions (3 hours)
7. Financial intermediaries (6 hours)
8. Regulation and supervision (3 hours)

Part II – Financial instruments, products, and financial services (20 hours, 3 CFU/ECTS)
9. Financial operations (2 hours)
10. The value of the money and the evaluation of financial securities (8 hours)
11. Firms’ and households’ financial needs and choices (5 hours)
12. Bond and debt securities and stocks (5 hours)

Part I) THE FINANCIAL SYSTEM: tasks, structure, intermediaries, markets and regulation

1. Structure and tasks of financial markets and intermediaries
1.1. Contracts, intermediaries and markets: basic definitions
1.2. Financial accounts of the economy
1.3. Tipologies of financial intermediaries
1.4. Basic tasks of the financial system
1.5. Intermediation function
1.6. Credit function
1.7. Managing risk in the financial system
1.8. Financial intermediaries as a system. Macroeconomic tools of the financial system
2. Banks and banking system.
2.1 The production process in a bank and its basic balance sheet structure
2.2 Banking models: commercial bank, specialized bank, banking and financial groups
2.3 The banking system in Italy and its evolution
3. Insurance intermediaries and pension funds
3.1 The production process in an insurance company and its basic balance sheet structure
3.2 The Insurance industry in Italy and its evolution
3.3 Pension funda
4. Securities industry and financial markets
4.1 The relationship between markets and intermediaries
4.2 Securities and derivatives markets in Italy
4.3 Investment societies , dealers and brokers
4.4 Mutual funds
5..The financial system regulation
5.1 Why regulate financial markets and intermediaries
5.2 Supervision and regulation
5.3 Main objectives and tools for regulaion
5.4 Transparency in financial contracts
PARTE II- Financial instruments
6. Basic evaluation techniques of financial instruments
6.1.Money value in time
6.2 Capitalization and net present valuea
6.3 Financial risk
6.4 Insurance risk
7. Financial needs and solutions for families
7.1 Payment services
7.2 Investment services
7.3 Investment management services
7.4 Financing real investments and consumption
8. Financial needs and solutions for firms
8.1 Evaluation of financial capabilities of firms
8.2 Payments and liquidity services
8.3 Commercial credit financing
8.4 Investment financing
8.5. Risk capital
8.6.Debts, markets and financial tools for small business

Testi obbligatori
A. FERRARI, E. GUALANDRI E ALTRI, Il sistema finanziario: funzioni mercati e intermediari, G. GIAPPICHELLI - 7 EDIZIONE. Le parti da studiare saranno indicate a lezione

Testi consigliati per l’approfondimento

- ANIA, Relazione Annuale, Roma
- BANCA CENTRALE EUROPEA, Bollettino mensile
- BANCA D’ITALIA, Relazione Annuale, Roma
- BANCA D’ITALIA, “Bollettino Economico”, numeri vari
- CONSOB, Relazione Annuale, Roma

Convenzionale

Teaching lessons for a total of 30 hours in classroom and 30 hours in distance Learning.

The lecturer meets the students according to a specific timetable published on the e-learning platform of the course.

Professors

BERNASCONI NICOLETTA