MARKET ECONOMY AND FINANCIAL INSTITUTIONS

After a brief introduction to the fundamentals, structure and functions of the financial intermediation system, the purpose of the course focuses on: • Sharing of the different types of financial markets • Assessment of the impact of the latter on the fluctuation of variables such as inflation • Analysis of the interest rate overview and evaluation of existing financial instruments • Transfer of competences related to banking and financial regulation with particular attention to crisis management • Methodology for measuring different risks (first, second and third levels) • Learning the technical, legal, financial and operational characteristics of financial instruments traded by intermediaries •Ability to address innovative issues on the current market. In particular, the issue of Sustainability and the environmental, social and governance variables that have so far fuelled the 2030 Agenda roadmap will be addressed.

Know how to use the essential tools of financial mathematics; know the basic elements of commercial law of financial intermediaries; understand the fundamental mechanisms of monetary policy and its effects on the economic system.

Knowledge and understanding: the student will acquire elementary knowledge on intermediation mechanisms, instruments, markets and financial intermediaries, risks and regulation; will understand the significance of the prices of financial instruments and the reasons for their variations; will be able to recognise the rationale for the central bank’s monetary policy actions and predict their desired effects on financial and real markets; will have the general framework for the regulation of financial markets and intermediaries. Ability to apply knowledge and understanding: the student will be able to evaluate financial instruments, calculate ex post and expected returns; will be able to capture the main risk factors associated with financial instruments and calculate the impact of those risks on expected returns; it may conceive simple investment and risk management structures. Autonomy of judgment: the student will have developed the ability to critically evaluate the investment and financing opportunities offered by the markets and financial intermediaries; may evaluate the presence of any mispricing situations on the markets; to interpret price developments dynamically; to express personal opinions on the monetary policy choices of the central bank. Communication skills: the student will have developed the ability to understand the language, including slang, operators and mass media dealing with finance; will be able to interact with professionals in the sector to comment on market trends and will be able to explain to non-specialists the most relevant themes and trends of the market, for example by expressing opinions on the investment of savings and the acquisition of resources for a simple company. Learning skills: the student will be able to keep constantly updated on the dynamics of financial markets, on the evolution of innovations and new techniques for the intermediation of financial resources and will be able to continuously enrich its knowledge in this field by consulting appropriate sources of specialist information.

Analysis of the characteristics and functioning of financial markets Theory of intermediation and functions of financial intermediaries Financial intermediaries: management, risks and regulation Analysis of the characteristics of financial instruments traded on financial markets

The reference is Mishkin, F.S., Eakins, S.G., Beccalli, E. "Financial Institutions and Markets," (Ninth Edition) Pearson. Supporting teaching material “Finanza Semplice: Guida alle Banche e ai Mercati” - A.Pallini, S.Scamporrino. Slides and exercises presented in class and signalled by the professor as part of the final exam.

The teaching activity is articulated as follows: Frontal lectures: aimed at providing basic knowledge, and discussing with students the program's topics. Exercises: aimed at the improvement of application skills and problem solving. Seminars: analysts, experts, representatives of the credit and financial intermediation sector are invited to enrich the course content by bringing their professional experience to the classroom. Group project: students are involved in group project presentation activities to develop the skills of research, coordination, adoption of technical language and public speaking. Individual study: students integrate the knowledge and skills acquired in the classroom with an individual study of the textbook and reading of in-depth documents indicated by the teacher to promote independent learning skills.

For attending students: - continuous Assesment (30%) -Group project (30%) -Written exam (40%) Or - Written exam (100%) For non-attending students: Written exam (100%) Students are considered attendees if they systematically participate in and follow the lessons. The essential requirement to be considered an attendee is continuous participation in group work and intermediate assessments. The evaluation of attending students will be based on the final written exam (40%), periodic assessments (30%), and group work (30%), which will take place during the course. The intermediate checks for continuous assessment will be conducted during lessons through written questions related to the material covered in previous classes. The written exam will consist of exercises similar to those assigned or completed during the course, multiple-choice questions, and short open-ended questions. The exam will cover chapters 6 to 24 (excluding chapter 19) of Book 3. The evaluation of group work will initially be the same for all group members and will also be assessed individually to the extent that the instructor can verify each member’s actual contribution. To this end, classroom presentations will not be assigned to one or more "spokespersons"; instead, the instructor will invite some or all group members to present or discuss parts of the work. The composition of the groups will be determined exclusively by the instructor and communicated at the beginning of the course. In the days immediately following, each student must confirm or decline their intention to participate in group work and continuous assessments. Those who withdraw from the assigned group will be considered non-attending students. For non-attending students Non-attending students also include those who do not participate in or withdraw from group work and/or do not take part in continuous assessments. Starting from the winter exam session (December-January), all students with outstanding exam requirements will be considered non-attending students.

There are no formal barriers. The assignment of the final thesis is made by the professor after the approval of the topic, the bibliographic research, and a brief memo illustrating the thesis project.