75935 - Rules and Controls of Financial System

Learning outcomes

The course aims to present the main banking regulation tools, to understand and manage banking risks, specifically the typical "credit risk". At the end of the course, the student will be capable of analyzing the economic motivations of financial regulation concerning banks and financial markets, with specific reference to the rules governing the bank-businesses relationship. The student will be capable of analyzing the main contents of the Basel Accords.

Course contents

1. Risk framework in financial intermediation. Classification of risks, with particular emphasis on credit risk. Risk management, capital adequacy, and crises of financial intermediaries.
2. Regulation and supervision of the financial system. Rationale, objectives, models, and instruments of regulation and supervision. The new supervisory architecture within the European Union framework.
3. Supervision and regulation of credit institutions. Prudential supervision. The Basel Accords.
4. Financial markets and financial instruments: organization and regulatory framework. Oversight of listed companies.
5. Emerging topics: credit risk, FinTech and new regulatory developments, bank crisis management in the European Union.
   

Readings/Bibliography

Economia e Regolamentazione del Sistema Finanziario, Marco Onado, Quinta Edizione, 2021, Il Mulino.

Additional material will be distributed by the instructor during the lectures.

Lectures are supported by the use of PowerPoint presentations. To complete the course requirements, students are expected to study the assigned textbook chapters or the current materials provided (including publications and/or reports from the ECB, EBA, Banca d’Italia, etc.).

Guest lectures, either in person or online, may be delivered by industry experts from supervisory authorities or credit institutions.

Teaching methods

In-class lectures and discussion of case studies.

Assessment methods

Written exam at the end of the course, that will last 2 hours. The exam comprises multiple choice, and open end questions, and case study discussion.

The final mark is expressed out of 30 points according to the following graduation:

• <18, fail;
• 18-23, sufficient;
• 24-27, good;
• 28-30, very good;
• 30 with laude, excellent.

A positive final mark can only be refused once.

Teaching tools

Teaching material (slides and discussion of case studies).

The slides can be downloaded by clicking on "Teaching resources on Virtuale" or directly from the "Virtuale" website

Office hours

See the website of Andi Duqi