Course 2026-2027 a.y.

• Course Introduction
• The European Banking System: An Overview
• Structural Differences Between the European and U.S. Banking Systems
• What Do Banks Do, and What Risks Do They Face? Traditional vs. Emerging Risks: An Overview
• Measuring and Managing Interest Rate Risk: The Maturity Gap Model and the Duration Gap Model
• Focus Topic: Managing Interest Rate Risk — The Case of Silicon Valley Bank
• Measuring and Managing Credit Risk
• Focus Topic: Asset Quality and the Case of Non-Performing Loans (NPLs) in European Banks
• Capital Management and the Role of Bank Capital
• Focus Topic: Securitization as a Powerful Tool in Bank Risk Management
• Measuring and Managing Liquidity Risk
• Bank Balance Sheets, Bank Performance, and Bank Evaluation
• The European Regulatory and Supervisory Infrastructure: An Overview
• A Closer Look at Capital and Liquidity Regulation
• Banking Union and Resolution Tools
• Emerging Risks and Supervisory Issues in Banking

The main objective of the course is to provide students with an in-depth analysis of the functioning of the banking industry, in light of the main (traditional and emerging) sources of risk and the binding regulatory and supervisory framework.

Have a clear understanding of the characteristics and specificities of the European banking system; identify the main recent trends in European banking; identify the main traditional and emerging risks affecting banks and their impact on bank performance; understand the implications of financial supervision and regulation for banking activities.

• Lectures
• Guest speaker's talks (in class or in distance)
• Practical Exercises
• Individual works / Assignments
• Collaborative Works / Assignments

• Exercises where the concepts learned in the lectures are applied to solve concrete problems

• Individual and collaborative in-class, case-based assignments and discussions on selected topic

• Guest speaker talks to gain a clearer understanding of the main challenges faced by banks in an evolving landscape, including emerging risk types (e.g., how environmental and climate-related risks are measured and managed), and to explore the implications of recent trends (e.g., Fintech) for banking businesses

Details on attendance rule and exam structure will be provided at the beginning of the course and made available in B-Board. 

• The assessment consists of multiple-choice questions (MCQs) and quantitative exercises designed to evaluate students' understanding and application of the course content.
  • Understanding the European banking system: MCQs and short exercises assess knowledge of the main characteristics and institutional features of the European banking system.
  • Identifying recent trends in European banking: MCQs assess students' ability to recognize key developments and distinguish among different banking strategies and business models.
  • Understanding bank risks and their impact on performance: MCQs and exercises evaluate students' ability to identify traditional and emerging risks and apply relevant metrics and analytical tools to assess risk and bank performance.
  • Understanding financial supervision and regulation: MCQs and exercises assess students' understanding of the European regulatory framework and its implications for banks' activities, risk management, and strategic decisions.
• Details on exam structure will be provided at the beginning of the course and made available in B-Board. 

The teaching materials consist of slides, teaching notes, and readings made available by the instructors on Blackboard. The final list of required materials to be tested during the exam will be posted ahead of the exam sessions.