93250 - Economics Of Financial Intermediation

Learning outcomes

This course introduces students to financial markets, financial institutions, and financial authorities. Emphasis is placed upon the economic effects of financial institutions and markets on various sectors of the economy. The course will outline the institutional structure of financial intermediation and the concerns facing the regulators and managers of these institutions. Students will also learn the transmission mechanism of monetary policy in a market based economy, the role played by market liquidity and sovereign debt, the policy tools of quantitative and qualitative easing.

Course contents

1. Function and structure of financial markets
2. Interest rates and the yield curve
3. Why financial institutions exist
4. The role of central banks
5. The conduct of monetary policy
6. Money markets and interbank markets
7. The bond market
   
8. Banking and the management of financial institutions
9. Risk management in financial institutions
   
10. Bank regulation
11. Financial stability and financial crises
    
12. Other financial intermediaries

Exchange students who plan to take this course are expected to be familiar with the basic concepts of microeconomics, macroeconomics, accounting, and mathematics.

Readings/Bibliography

Required readings:

Frederic S. Mishkin and Stanley G. Eakins, Financial Markets and Institutions, global edition, 9^thedition, 2018, Pearson - selected chapters (as indicated in the slideset).

Any other material (slides, papers, etc.) that will be posted on Virtuale.

Teaching methods

Lectures, exercises, discussion of case studies.

Assessment methods

Students can take either: (1) the mid-term exam (covering the first part of the course) and the second partial exam (covering the second part of the course); or (2) the full exam (covering the entire material). All exams (partial and full) consist of a combination of multiple-choice questions, exercises, and true/false questions. The exams are closed-book written tests. Mock exams will be provided on Virtuale.

The maximum possible score on the overall exam is 30 cum laude, in case all answers are correct, complete and formally rigorous. The grade distribution is as follows:
<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

In case of an online exam, the exam will be run through Zoom and Exams Online (EOL). Detailed instructions on how to manage and hand in the online exam will be made available on Virtuale prior to the exam.

Teaching tools

Slides

Exercises

Additional readings and videos

Office hours

See the website of Mascia Bedendo