MARKET ECONOMY AND FINANCIAL INSTITUTIONS

Provide the basic knowledge of the mechanisms of financial intermediation and the functioning of financial markets; Gain skills relating to the management conditions of financial intermediaries, with particular reference to economic and risk profiles; Learn the technical, legal, financial and operational characteristics of financial instruments traded by intermediaries.

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 have acquired elementary knowledge of intermediation mechanisms, instruments, markets and financial intermediaries; will understand the meaning of financial instrument prices and the reasons for their variations; will be able to recognise the reasons for the central bank's monetary policy actions and predict the desired effects on financial and real markets; will possess the general framework for the regulation of markets and financial intermediaries. Ability to apply knowledge and understanding: the student will be able to assess 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 these risks on expected returns; will be able to design simple investment and risk management structures. Autonomy of judgement: the student will have developed the ability to critically assess the investment and financing opportunities offered by markets and financial intermediaries; will be able to assess the presence of possible mispricing situations on the markets; dynamically understand price trends; express personal opinions on the monetary policy choices of the central bank. Communicative skills: the student will have developed the ability to understand the language, even slang, of operators and media that deal with finance; he will be able to talk to professionals in the sector to comment on market trends and will be able to explain to non-specialists the most relevant issues and market trends, for example, 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 of intermediation of financial resources and will be able to continuously enrich his or her knowledge on the subject by consulting the appropriate sources of specialist information.

The contents of the Economics of Financial Markets and Intermediaries course are as follows: The financial system Theory of financial intermediation Central bank and monetary policy Financial supervision Banks and other financial intermediaries Risk management Financial instruments

The reference book is Mishkin, F.S., Eakins, S.G., Beccalli, E. "Financial Institutions and Markets," (Ninth Edition) Pearson. 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: • Written exam (70%) • Group project (30%) Attending students are those who systematically attend lectures. The essential requisite for being considered an attending student is continuous participation in a group project. The evaluation of the attending students will result from the outcome of the final written exam (70%) and the group project (30%) that will take place during the course. The written test will consist of: multiple-choice questions, short open-ended questions. The subject of the test will be the chapters of the book indicated below: Chapter Topic 3 Reasons for financial institutions 6 Banks: fundamentals of business and management 7 Banking sector: structure and competition 8 Banking and financial regulation 9 Mutual funds 10 Insurance companies and pension funds 11 Investment banks, brokers and dealers, venture capital 12 Interest rates and the role in valuation 13 Bank operations 14 Financial statements and bank management 15 Risk management in financial institutions 16 Central banks structure: the European Central Bank 17 Monetary policy management: instruments and objectives 18 Financial markets and interest rates 20 Money markets 21 Bond markets 22 Stock markets 23 Forex markets 24 Derivatives markets Plus, any other reference material distributed during the year and indicated as "study material". The assessment of group work will initially be the same for all members of the group and individual insofar as the professor can ascertain the effective contribution of each member. To this end, the classroom presentations will not be entrusted to one or more "spokesmen", but the professor will invite some or all of the group members to present or discuss parts of the work. The composition of the groups will be decided by the professor, and communicated at the beginning of the course. In the days immediately following, each person must confirm or not confirm their intention to participate in the working groups. Those who communicate their withdrawal from the assigned group and those who will not actually participate to the team work, will be considered "non-attendees". For non-attending students: • Written exam (100%) Non-attending students are those who cannot systematically follow the course (regardless of the reason, i.e. participation in internships or completion of the Erasmus period does not allow attendance). Non-attendees are also those who do not participate or withdraw from group work. One year after the end of the course, all students in debt are considered non-attending. Non-attending students will only be assessed based on the final written exam, the structure of which will be the same, including question/exercises to make the number of questions/exercises appropriate to the value of the test (that will be 100%). The test will cover all the chapters of the textbook. Mid-term test: there is no intermediate test for both attendants and non-attendants.

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.