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Course 2018-2019 a.y.

30148 - MANAGEMENT OF FINANCIAL INSTITUTIONS

Department of Finance

Course taught in English


Go to class group/s: 31 - 32

CLEAM (6 credits - I sem. - OP  |  SECS-P/11) - BESS-CLES (6 credits - I sem. - OP  |  SECS-P/11) - WBB (6 credits - I sem. - OP  |  SECS-P/11) - BIEF (6 credits - I sem. - OP  |  SECS-P/11) - BIEM (6 credits - I sem. - OP  |  SECS-P/11) - BIG (6 credits - I sem. - OP  |  SECS-P/11) - BEMACS (6 credits - I sem. - OP  |  SECS-P/11)
Course Director:
BRUNELLA BRUNO

Classes: 31 (I sem.) - 32 (I sem.)
Instructors:
Class 31: BRUNELLA BRUNO, Class 32: BRUNELLA BRUNO


Mission & Content Summary
MISSION

The world of financial institutions has changed dramatically since the 2008-09 global financial crisis, when many large financial firms around the world failed and were bailed out by their central government. The regulatory framework has changed accordingly, to provide stricter responses and make the financial system more resilient. In light of these changes, the course focuses on main managerial issues faced by banks and insurance companies over the last decade. They include funding and investment strategies as well as risk management and performance measurement. These are examined in light of the most relevant and recent regulation, that have been affecting deeply the way banks and insurance run their business.

CONTENT SUMMARY

The analysis is carried out along the following streams.

  • The banking industry today: players, strategies, and regulation.
  • Liabilities management and credit policy in banking: financial instruments and business practices.
  • Banking business and Risk management. Focus on credit risk and the NPL issue.
  • Financial statement analysis and performance measures in banking.
  • The insurance industry today: players, strategies and regulation.
  • Insurance process and insurance premiums.
  • Risk and capital management for insurers.
  • Financial statement analysis and performance measures in insurance.

Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Describe the characteristics of the banking and insurance business (what do banks and insurance companies do? which is their core business? which are the main funding and investment instruments issues by banks?).
  • Identify the main drivers of banks' funding, credit, and investment decision.
  • Recognize main risk typologies and how these risk are measured and managed.
  • Explain which are the main set of rules applying in banking and insurance.
  • Explain how the regulatory framework affect insurance companies and banks behavior.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Assess and interpret facts in the real world in light of what they have learned during the course.
  • Comment on banks’ and insurance companies’ behavior and identify main drivers of their performance (e.g., what does explain European banks’ low profit?).
  • Assess and measure banks’ and insurance companies’ performance (e.g. banks’ profitability, liquidity, asset quality, capitalization).
  • Identify and measure main source of risks for banks (e.g., amount of exposure to interest rate risks).
  • Comment on benefits and flaws of regulation as well as hypothesize main potential effects of new set of rules.

Teaching methods
  • Face-to-face lectures
  • Guest speaker's talks (in class or in distance)
  • Case studies /Incidents (traditional, online)
DETAILS

Formal face-to-face lectures are complemented by guest speakers' talks from the industry (e.g. bankers and regulators). The idea is to gain focus on specific and up-to-date topics (example of hot topics in banks are: the introduction of a new resolution procedure within the European banking union and the Non-performing loans issues in the European banking industry). In the same spirit, to stimulate the debate, lectures are structured based on empirical evidence and incidents, stylized facts are presented and commented in class, practical examples of instruments and techniques are proposed. Consistently traditional material (e.g. textbook and slides) are complemented and empowered by empirical academic papers, institutional analyses (e.g. ECB’ reports), as well as relevant newspaper articles (e.g. FT columns).


Assessment methods
  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
  •   x x
    ATTENDING AND NOT ATTENDING STUDENTS

    Students can choose among the following exam options:

    1. Take a general exam covering the whole course. It consists of multiple choice questions and exercises.
    2. Take two partial exams, both made of multiple choice questions and exercises.The final grade is the sum of the two partial grades. 

    There are no differences, as for the exam policy, between attending and non attending students. 


    Teaching materials
    ATTENDING AND NOT ATTENDING STUDENTS
    • Management of Financial Institutions, 2018-19, available at Egea Bookshop.
    • Additional material (readings, slides and teaching notes), available in Bboard.
    • The final and updated version of  the required material are communictaed in class and  posted on the e-learning platform (Bboard).
    Last change 19/06/2018 07:46