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Financial Intermediation

Persone

Berardi A.

Docente titolare del corso

Bezzi G.

Assistente

Descrizione

The course describes the structure of financial intermediaries, in particular banks. It is organized into two parts. 

Part I: Definition of the various types of financial intermediaries, their typical balance sheet and risks they face. Study of models to quantify the amount of interest rate and liquidity risk that is typically faced by banks. This Part will end on April 2, 2026.

Part II: Analysis of models for quantifying credit risk. Outline of the various approaches used by banks to measure the risk of their loan portfolios. Introduction to instruments to manage these risks, such as credit derivatives and securitization.

Obiettivi

The course aims to describe the structure of financial intermediaries, with a focus on banks.

Modalità di insegnamento

In presenza

Impostazione pedagogico-didattica

Lectures and exercise sessions.

Please refrain from using laptops or any portable device for web surfing, chatting, etc. 

Active participation in class discussion is highly encouraged.

Modalità d’esame

Grading is based on an in-class final exam (80%) and group case assignments (20%). That is, 

Course grade = 80% × final grade + 20% × average of assignment grades

  • The final will consist of a mix between quantitative exercises and qualitative (open or multiple choice) questions.
  • Assignments: There will be two assignments (case studies) throughout the course, one for each part. Students should work in groups of between 3 to 5 members and turn in the following deliverables: a short (maximum two pages single-sided) executive summary that summarizes the analysis and addresses the questions that are given; an Excel file with the solution; a slideshow presentation of the results. All files should be uploaded on time, no later than midnight of the due date, to be considered for grading. Students are also required to attend the class where the case will be discussed. Each group should also bring the files to class, where randomly picked group(s) will be required to present their solution. (BEWARE: Being picked for the first case does not prevent a group from being picked for the subsequent case.) Students must be present on the day(s) of the case discussion to earn the corresponding grade.
  • If students do not turn in the case and do not participate in class when it is discussed, the assignment will be graded zero, which means that the maximum grade achievable for the course will be 8/10.
  • Please upload the packet (three files) in the corresponding assignment section of the course on iCorsi.

Bibliografia

Programma