Budget process in Italy, and evolution of public budgeting. Public Debt.
Cost Benefit Analysis in Theory and Practice.
Business Taxation (with special reference to Italy).

The same items shown above,in the Italian language section.

Monetary theory
Functions and forms of money. Value of money, monetary stability and inflation. Money and credit. Interest rate and rate of return on assets. The structure of interest rates. Interest rates, asset pricing and financial markets. Interest rates, exchange rates and movements of capital. Banks and money supply. Money demand and quantitative theory of money. Theories of endogenous money.

Monetary policy and transmission mechanisms
Effectiveness of monetary policy. Neutrality of money and dichotomy in the classical model. Monetary economy. Keynesian models. Monetarist models. The New Consensus in Macroeconomics and the IS-PC-MR model. The objectives of monetary policy. The instruments of monetary policy: mandatory reserves, interest rates, money supply and capital requirements of banks. The mechanisms and channels of transmission of monetary policy.

European monetary policy
The Maastricht Treaty. Independence and governance of the ECB. The ECB's strategy. The intervention instruments of the ECB. Credit risk regulation: from the Basel agreements to the European banking union.

Regulation of financial markets and financial crises
Stability and volatility of the financial markets. Currency crisis and financial crisis. Money and effective demand. Credit cycle and financial crises. The financial crisis of 2007 - 2009. Bank rescue and sovereign debt crisis. Risks of national default and euro crisis. Secular Stagnation and sterilization of monetary policies. Corporate Saving Glut. The excesses of liquidity and the instability of the financial markets.

Bain K., Howells P., Monetary Economics. Policy and its Theoretical Basis, Palgrave Macmillan, 2009.

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008.

Mishkin F.S., The Economics of Money, Banking and Financial Markets, Pearson- Addison Wesley, 2004.

Modul I - 30 hours
1. From the regulation on the budget of the civil code to the international accounting principles
- the civil code and the most recent innovations
- national accounting standards
- the process of homologation of international accounting standards and financial reporting
- the new generation accounting directives

2. The approved IAS principles: analysis of the main ones (among which)
2.1. IAS 1 and framework
2.2. IAS 2 inventories
2.3. IAS 11
2.3. IAS 16 fixed assets and plant
2.4. IFRS 16 leases
2.5. IAS 38 intangible assets
2.6. IAS 36 impairment
2.7. IAS 40 real estate investments
2.8. IFRS 9, IAS 39 - IFRS 7 financial instruments
2.9 IFRS 3 business combinations
2.10 IFRS 4 insurance contracts

Part II - 30 hours
1. Concrete applications of the accounting standards examined
2. Practical case: analysis of an IAS - IFRS balance sheet for an industrial sector company
3. The projects currently underway at the IASB: outline of the main new elements
4. The balance between financial accounting and management accounting
5. The accounting models for the preparation of the financial statements

Zanda G, Il bilancio delle società, Lineamenti teorici e modelli di redazione, Giappichelli, 2007
S. Pucci, L’iscrizione nel bilancio delle società quotate delle operazioni di gestione del rischio finanziario, Giappichelli, Torino, 2010

Lecture notes prepared by the teacher already published on the faculty website

Readings chosen from those selected by the teacher and indicated in the classroom
Other support material indicated from time to time in the classroom

It is possible to provide part of the material in English

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

The course aims to provide students with the tools to learn about the lines of banking and financial law. In particular, the module dedicated to banking law will deepen: the system of sources of banking law, both European and national; the European banking union, the notion of a bank and financial intermediary; the role of the Bank of Italy; the different types of banks; banking activities, banking products and complex products; banking transparency; contracts with customers, consumer credit, the role of the ABF; then, with regard to financial activities, credit discounting, customer protection and leasing activities are deepened.

With reference, instead, to the part of insurance law, the other module concerns: the regulation of the insurance company, the insurance intermediaries, the insurance contracts, the sources, the insurance and reinsurance companies, the Directive c.d. "solvency II"; supervision of the insurance system, competition law and regulations of foreign companies; distribution of insurance products and various figures of intermediaries; non-life insurance classes; life insurance; forms of risk sharing in the insurance field with particular reinsurance analysis; co-insurance; compulsory insurance.

P. Bontempi, Diritto bancario e finanziario, Giuffré, last edition: from the cap. I to the chap. VIII included.
A. Donati-G. Volpe Putzolu, Manual of insurance law, Milan, Giuffrè Editore, last edition, 2012: part I, from the cap. II to the chap. V (from page 15 to page 47); part I, from the cap. VII to chap. IX (from page 57 to page 68); parts II / III, from the cap. XI to the chap. XXI (from page 77 to page 178); part III, from the chap. XXIII (from page 185 to page 198); part III, from the chap. XXV to the chap. XXVI (from page 205 to page 222).

The Course aims to provide an overview of the role and the main activities carried out by the banks in the investment banking business; the influence of the regulation; the organizational and management aspects; the technical characteristics and economic profiles of the corporate finance transactions; the definition, measurement and management of the typical risks.

Forestieri G. (2018), Corporate and Investment Banking, fourth edition, Egea, Milan.

The main contents of the course are the following:

The role and characteristics of risk management in banking.
Interest rate risk. The repricing gap model. The duration gap model. Internal transfer rates (ITR).
Liquidity risk. Funding and market liquidity risks.
Market risk. Value at Risk (VAR) models. Parametric approach. Volatility and correlation estimation. Simulation models. Backtesting. Limitations of VAR models. Expected Shortfall.
Credit risk. Scoring models. Capital market models. Recovery risk. Portfolio models. Rating systems.
Operational risk.
Regulation. The Basel Accords.
Value creation.

A. Resti, A. Sironi, Rischio e valore nelle banche. Misura, regolamentazione, gestione. Egea, 2008 (including updates on the website www.egeaonline.it).

Budget process in Italy, and evolution of public budgeting. Public Debt.
Cost Benefit Analysis in Theory and Practice.
Business Taxation (with special reference to Italy).

The same items shown above,in the Italian language section.

Monetary theory
Functions and forms of money. Value of money, monetary stability and inflation. Money and credit. Interest rate and rate of return on assets. The structure of interest rates. Interest rates, asset pricing and financial markets. Interest rates, exchange rates and movements of capital. Banks and money supply. Money demand and quantitative theory of money. Theories of endogenous money.

Monetary policy and transmission mechanisms
Effectiveness of monetary policy. Neutrality of money and dichotomy in the classical model. Monetary economy. Keynesian models. Monetarist models. The New Consensus in Macroeconomics and the IS-PC-MR model. The objectives of monetary policy. The instruments of monetary policy: mandatory reserves, interest rates, money supply and capital requirements of banks. The mechanisms and channels of transmission of monetary policy.

European monetary policy
The Maastricht Treaty. Independence and governance of the ECB. The ECB's strategy. The intervention instruments of the ECB. Credit risk regulation: from the Basel agreements to the European banking union.

Regulation of financial markets and financial crises
Stability and volatility of the financial markets. Currency crisis and financial crisis. Money and effective demand. Credit cycle and financial crises. The financial crisis of 2007 - 2009. Bank rescue and sovereign debt crisis. Risks of national default and euro crisis. Secular Stagnation and sterilization of monetary policies. Corporate Saving Glut. The excesses of liquidity and the instability of the financial markets.

Bain K., Howells P., Monetary Economics. Policy and its Theoretical Basis, Palgrave Macmillan, 2009.

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008.

Mishkin F.S., The Economics of Money, Banking and Financial Markets, Pearson- Addison Wesley, 2004.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

The course aims to provide students with the tools to learn about the lines of banking and financial law. In particular, the module dedicated to banking law will deepen: the system of sources of banking law, both European and national; the European banking union, the notion of a bank and financial intermediary; the role of the Bank of Italy; the different types of banks; banking activities, banking products and complex products; banking transparency; contracts with customers, consumer credit, the role of the ABF; then, with regard to financial activities, credit discounting, customer protection and leasing activities are deepened.

With reference, instead, to the part of insurance law, the other module concerns: the regulation of the insurance company, the insurance intermediaries, the insurance contracts, the sources, the insurance and reinsurance companies, the Directive c.d. "solvency II"; supervision of the insurance system, competition law and regulations of foreign companies; distribution of insurance products and various figures of intermediaries; non-life insurance classes; life insurance; forms of risk sharing in the insurance field with particular reinsurance analysis; co-insurance; compulsory insurance.

P. Bontempi, Diritto bancario e finanziario, Giuffré, last edition: from the cap. I to the chap. VIII included.
A. Donati-G. Volpe Putzolu, Manual of insurance law, Milan, Giuffrè Editore, last edition, 2012: part I, from the cap. II to the chap. V (from page 15 to page 47); part I, from the cap. VII to chap. IX (from page 57 to page 68); parts II / III, from the cap. XI to the chap. XXI (from page 77 to page 178); part III, from the chap. XXIII (from page 185 to page 198); part III, from the chap. XXV to the chap. XXVI (from page 205 to page 222).

Modul I - 30 hours
1. From the regulation on the budget of the civil code to the international accounting principles
- the civil code and the most recent innovations
- national accounting standards
- the process of homologation of international accounting standards and financial reporting
- the new generation accounting directives

2. The approved IAS principles: analysis of the main ones (among which)
2.1. IAS 1 and framework
2.2. IAS 2 inventories
2.3. IAS 11
2.3. IAS 16 fixed assets and plant
2.4. IFRS 16 leases
2.5. IAS 38 intangible assets
2.6. IAS 36 impairment
2.7. IAS 40 real estate investments
2.8. IFRS 9, IAS 39 - IFRS 7 financial instruments
2.9 IFRS 3 business combinations
2.10 IFRS 4 insurance contracts

Part II - 30 hours
1. Concrete applications of the accounting standards examined
2. Practical case: analysis of an IAS - IFRS balance sheet for an industrial sector company
3. The projects currently underway at the IASB: outline of the main new elements
4. The balance between financial accounting and management accounting
5. The accounting models for the preparation of the financial statements

Zanda G, Il bilancio delle società, Lineamenti teorici e modelli di redazione, Giappichelli, 2007
S. Pucci, L’iscrizione nel bilancio delle società quotate delle operazioni di gestione del rischio finanziario, Giappichelli, Torino, 2010

Lecture notes prepared by the teacher already published on the faculty website

Readings chosen from those selected by the teacher and indicated in the classroom
Other support material indicated from time to time in the classroom

It is possible to provide part of the material in English

The Course aims to provide an overview of the role and the main activities carried out by the banks in the investment banking business; the influence of the regulation; the organizational and management aspects; the technical characteristics and economic profiles of the corporate finance transactions; the definition, measurement and management of the typical risks.

Forestieri G. (2018), Corporate and Investment Banking, fourth edition, Egea, Milan.

The main contents of the course are the following:

The role and characteristics of risk management in banking.
Interest rate risk. The repricing gap model. The duration gap model. Internal transfer rates (ITR).
Liquidity risk. Funding and market liquidity risks.
Market risk. Value at Risk (VAR) models. Parametric approach. Volatility and correlation estimation. Simulation models. Backtesting. Limitations of VAR models. Expected Shortfall.
Credit risk. Scoring models. Capital market models. Recovery risk. Portfolio models. Rating systems.
Operational risk.
Regulation. The Basel Accords.
Value creation.

A. Resti, A. Sironi, Rischio e valore nelle banche. Misura, regolamentazione, gestione. Egea, 2008 (including updates on the website www.egeaonline.it).

Monetary theory
Functions and forms of money. Value of money, monetary stability and inflation. Money and credit. Interest rate and rate of return on assets. The structure of interest rates. Interest rates, asset pricing and financial markets. Interest rates, exchange rates and movements of capital. Banks and money supply. Money demand and quantitative theory of money. Theories of endogenous money.

Monetary policy and transmission mechanisms
Effectiveness of monetary policy. Neutrality of money and dichotomy in the classical model. Monetary economy. Keynesian models. Monetarist models. The New Consensus in Macroeconomics and the IS-PC-MR model. The objectives of monetary policy. The instruments of monetary policy: mandatory reserves, interest rates, money supply and capital requirements of banks. The mechanisms and channels of transmission of monetary policy.

European monetary policy
The Maastricht Treaty. Independence and governance of the ECB. The ECB's strategy. The intervention instruments of the ECB. Credit risk regulation: from the Basel agreements to the European banking union.

Regulation of financial markets and financial crises
Stability and volatility of the financial markets. Currency crisis and financial crisis. Money and effective demand. Credit cycle and financial crises. The financial crisis of 2007 - 2009. Bank rescue and sovereign debt crisis. Risks of national default and euro crisis. Secular Stagnation and sterilization of monetary policies. Corporate Saving Glut. The excesses of liquidity and the instability of the financial markets.

Bain K., Howells P., Monetary Economics. Policy and its Theoretical Basis, Palgrave Macmillan, 2009.

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008.

Mishkin F.S., The Economics of Money, Banking and Financial Markets, Pearson- Addison Wesley, 2004.

- Public Budget Revenues: taxes, contributions, and other charges
- The economic effects of Taxes both in closed and in open economies
- A Brief History of Western Public Finances as well as changing methodologies in the analysis of public economic decisions
- Social goods
- Tax design and Tax Incidence
- The Italian Tax System

A. Di Majo, Introduzione alla Scienza delle Finanze, ed. Pigreco, 2018, capitoli 1, 2, 5, 6, 7 (fino al paragrafo 7.4 incluso ed escluse pagg.312-313).
P.Bosi e M.C. Guerra, I tributi nell'economia italiana, Il Mulino, 2018, capitoli II, III, IV, V, VI, VII, VIII.

• The evolution of the analysis of Public Finance
• Public goods
• Taxes: characteristics and classification
• The economic effects of taxes
• The economic analysis of taxes and the theory of incidence
• The main taxes in the Italian tax system

1) Di Majo A. (2018), Introduzione alla Scienza delle Finanze, Edizioni Pigreco, Roma.

2) Bosi P., Guerra M.C. (2018), I tributi nell'economia italiana, Il Mulino, Bologna.

The purpose of the course is to provide exhaustive knowledge of financial intermediaries, markets, listed companies and the supervisory agency and, particularly, the following matters: general principles of financial markets law; solicitation to the public; services and investment firms; institutional investors; listed companies’ rules; controls on the securities market.

- R. Costi, Il mercato mobiliare, Torino, Giappichelli, last edition.
- Consob Regulation no. 17221/2010 concerning related parties transactions.
- Borsa Italiana Corporate Governance Code.

AA.VV, Diritto del governo societario, diretto da M. Irrera, Giappichelli, da p. 1 a p. 585

See Economia e gestione aziendale L-18 21210113 STATISTICA E - O

See Economia e gestione aziendale L-18 21210113 STATISTICA E - O

This graduate level course covers the following topics:
An overview of statistics
Data description: scales of measurement, how to describe data graphically for categorical data (pie chart, bar chart) and graphs for quantitative variables (histogram, pie chart)
How to describe data by summary statistics: measures of central tendency, variability and skewness.
How to create a box plot
How probability and probability distributions are involved in statistics
How binomial distributions are involved in statistics
The role that normal distributions play in statistics
Simple random sampling and sampling distribution of sample mean, central limit theorem, normal approximation to the binomial
Differentiation between a population and a sample, how to use a statistic to estimate a population parameter, confidence interval and its interpretation, inferences of population mean and proportion
Confidence interval for population mean, Sample size needed for estimating the population mean with a specified confidence level and specified width of the interval
Hypothesis testing: in terms of how to set up Null and Alternative hypotheses, understanding Type I and Type II errors, performing a statistical test for the population mean
p-value, how to compute it and how to use it
Inferences about μ with σ unknown: the t-distribution and the assumptions required to check in order to use it
How to compare the mean of two populations for independent samples: using pooled variances t-test versus separate variances t-test
How to compare the mean of two populations for paired data
How to compare two population proportions
Using contingency table and the Chi-square test of independence
Understanding concepts related to linear regression models including, least squares method, correlation, inferences about the parameters in the linear regression model

The course the course is taught in Italian so textbooks are in Italian:
- G. Cicchitelli, Statsitica: Principi e Metodi, Pearson Education, 3/Eds
- Sebastiani M. R. (2015) “Esercitazioni di statistica”. Esculapio Editore, 3° edizione.
For English speaking students a textbook is:
Introductory Statistics for Business and Economics by Thomas H. Wonnacott and Ronald J. Wonnacott
John Wiley & Sons Inc; International 2 Revised ed
Notes and handout (in Italian) are available at the web page of the course.

The course aims, first of all, to provide an overview of the role and the main functions of the financial system. The central part of the course is dedicated to an analysis of the technical characteristics and of the economic and management profiles of financial instruments and markets. Finally, the course presents the objectives as well as the organization and the behavioral models of financial intermediaries, also considering the role of regulation and supervision.
1. Real economy, financial system and financial intermediation
2. Theory of financial intermediation
3. Financial instruments
4. Financial markets
5. Banking
6. Investment services and asset management
7. Insurance
8. Payment systems
9. Risks in financial intermediation
10. Regulation and supervision
11. Monetary policy

Mishkin F.S., Eakins S.G. (2014), Financial Markets and Institutions, eighth edition, Pearson.

1. Financial system and financial intermediation
2. Theory of financial intermediation
3. Risks in financial intermediation
4. Financial instruments
5. Financial markets
6. Banking
7. Investment services and asset management
8. Insurance
9. Regulation
10. Re-regulation and supervision
11. Monetary policy
12. Payment systems

Nadotti, Porzio, Previati. Economia degli intermediari finanziari. McGraw-Hill, ultima edizione

The Course aims to provide an overview of the role and the main activities carried out by the banks in the investment banking business; the influence of the regulation; the organizational and management aspects; the technical characteristics and economic profiles of the corporate finance transactions; the definition, measurement and management of the typical risks.

Forestieri G. (2018), Corporate and Investment Banking, fourth edition, Egea, Milan.

1. PRELIMINARY CONCEPTS Money, time and risks. Present and future value, principal and interest. Contracts, exchange, prices. The risks.

2. FOUNDATIONS OF FINANCIAL CONTRACTS EVALUATION
2.1 EVALUATION IN CERTAINTY CONDITIONS Financial laws in certainty conditions. The exponential law. Annuities and mortgages. Internal rate of return on a financial transaction. Theory of financial equivalence laws.
2.2 FINANCIAL OPERATIONS IN THE MARKET. Value function and market price. The term structure. Duration indices and variability indices. Arbitrage valuations of floating rate notes. Interest Rate Swap. Term structure measurement. Term structure evolution. Introduction to financial options. Basic elements on equity options. Basic elements on traditional life insurance contracts.

David G. Luenberger
Investment Science
Oxford University Press (any edition)

Annamaria Olivieri, Ermanno Pitacco
Introduction to Insurance Mathematics
Springer, 2011

1. PRELIMINARY CONCEPTS Money, time and risks. Present and future value, principal and interest. Contracts, exchange, prices. The risks.

2. FOUNDATIONS OF FINANCIAL CONTRACTS VALUATION

2.1 VALUATION IN CERTAINTY CONDITIONS Financial laws under certainty conditions. The exponential law. Annuities and mortgages. Internal rate of return of a financial transaction. Theory of financial laws.

2.2 FINANCIAL OPERATIONS IN THE MARKET. Value function and market price. The term structure. Duration indices and variability indices. Arbitrage valuation of floating rate notes. Interest Rate Swap. Term structure measurement. Term structure evolution. Introduction to financial options. Basic elements on equity options. Basic elements on traditional life insurance contracts.

David G. Luenberger
Investment Science
Oxford University Press (any edition)

Annamaria Olivieri, Ermanno Pitacco
Introduction to Insurance Mathematics
Springer, 2011

Monetary theory
Functions and forms of money. Value of money, monetary stability and inflation. Money and credit. Interest rate and rate of return on assets. The structure of interest rates. Interest rates, asset pricing and financial markets. Interest rates, exchange rates and movements of capital. Banks and money supply. Money demand and quantitative theory of money. Theories of endogenous money.

Monetary policy and transmission mechanisms
Effectiveness of monetary policy. Neutrality of money and dichotomy in the classical model. Monetary economy. Keynesian models. Monetarist models. The New Consensus in Macroeconomics and the IS-PC-MR model. The objectives of monetary policy. The instruments of monetary policy: mandatory reserves, interest rates, money supply and capital requirements of banks. The mechanisms and channels of transmission of monetary policy.

European monetary policy
The Maastricht Treaty. Independence and governance of the ECB. The ECB's strategy. The intervention instruments of the ECB. Credit risk regulation: from the Basel agreements to the European banking union.

Regulation of financial markets and financial crises
Stability and volatility of the financial markets. Currency crisis and financial crisis. Money and effective demand. Credit cycle and financial crises. The financial crisis of 2007 - 2009. Bank rescue and sovereign debt crisis. Risks of national default and euro crisis. Secular Stagnation and sterilization of monetary policies. Corporate Saving Glut. The excesses of liquidity and the instability of the financial markets.

Bain K., Howells P., Monetary Economics. Policy and its Theoretical Basis, Palgrave Macmillan, 2009.

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008.

Mishkin F.S., The Economics of Money, Banking and Financial Markets, Pearson- Addison Wesley, 2004.

- Public Budget Revenues: taxes, contributions, and other charges
- The economic effects of Taxes both in closed and in open economies
- A Brief History of Western Public Finances as well as changing methodologies in the analysis of public economic decisions
- Social goods
- Tax design and Tax Incidence
- The Italian Tax System

A. Di Majo, Introduzione alla Scienza delle Finanze, ed. Pigreco, 2018, capitoli 1, 2, 5, 6, 7 (fino al paragrafo 7.4 incluso ed escluse pagg.312-313).
P.Bosi e M.C. Guerra, I tributi nell'economia italiana, Il Mulino, 2018, capitoli II, III, IV, V, VI, VII, VIII.

• The evolution of the analysis of Public Finance
• Public goods
• Taxes: characteristics and classification
• The economic effects of taxes
• The economic analysis of taxes and the theory of incidence
• The main taxes in the Italian tax system

1) Di Majo A. (2018), Introduzione alla Scienza delle Finanze, Edizioni Pigreco, Roma.

2) Bosi P., Guerra M.C. (2018), I tributi nell'economia italiana, Il Mulino, Bologna.

The purpose of the course is to provide exhaustive knowledge of financial intermediaries, markets, listed companies and the supervisory agency and, particularly, the following matters: general principles of financial markets law; solicitation to the public; services and investment firms; institutional investors; listed companies’ rules; controls on the securities market.

- R. Costi, Il mercato mobiliare, Torino, Giappichelli, last edition.
- Consob Regulation no. 17221/2010 concerning related parties transactions.
- Borsa Italiana Corporate Governance Code.

AA.VV, Diritto del governo societario, diretto da M. Irrera, Giappichelli, da p. 1 a p. 585

See Economia e gestione aziendale L-18 21210113 STATISTICA E - O

See Economia e gestione aziendale L-18 21210113 STATISTICA E - O

This graduate level course covers the following topics:
An overview of statistics
Data description: scales of measurement, how to describe data graphically for categorical data (pie chart, bar chart) and graphs for quantitative variables (histogram, pie chart)
How to describe data by summary statistics: measures of central tendency, variability and skewness.
How to create a box plot
How probability and probability distributions are involved in statistics
How binomial distributions are involved in statistics
The role that normal distributions play in statistics
Simple random sampling and sampling distribution of sample mean, central limit theorem, normal approximation to the binomial
Differentiation between a population and a sample, how to use a statistic to estimate a population parameter, confidence interval and its interpretation, inferences of population mean and proportion
Confidence interval for population mean, Sample size needed for estimating the population mean with a specified confidence level and specified width of the interval
Hypothesis testing: in terms of how to set up Null and Alternative hypotheses, understanding Type I and Type II errors, performing a statistical test for the population mean
p-value, how to compute it and how to use it
Inferences about μ with σ unknown: the t-distribution and the assumptions required to check in order to use it
How to compare the mean of two populations for independent samples: using pooled variances t-test versus separate variances t-test
How to compare the mean of two populations for paired data
How to compare two population proportions
Using contingency table and the Chi-square test of independence
Understanding concepts related to linear regression models including, least squares method, correlation, inferences about the parameters in the linear regression model

The course the course is taught in Italian so textbooks are in Italian:
- G. Cicchitelli, Statsitica: Principi e Metodi, Pearson Education, 3/Eds
- Sebastiani M. R. (2015) “Esercitazioni di statistica”. Esculapio Editore, 3° edizione.
For English speaking students a textbook is:
Introductory Statistics for Business and Economics by Thomas H. Wonnacott and Ronald J. Wonnacott
John Wiley & Sons Inc; International 2 Revised ed
Notes and handout (in Italian) are available at the web page of the course.

The course aims, first of all, to provide an overview of the role and the main functions of the financial system. The central part of the course is dedicated to an analysis of the technical characteristics and of the economic and management profiles of financial instruments and markets. Finally, the course presents the objectives as well as the organization and the behavioral models of financial intermediaries, also considering the role of regulation and supervision.
1. Real economy, financial system and financial intermediation
2. Theory of financial intermediation
3. Financial instruments
4. Financial markets
5. Banking
6. Investment services and asset management
7. Insurance
8. Payment systems
9. Risks in financial intermediation
10. Regulation and supervision
11. Monetary policy

Mishkin F.S., Eakins S.G. (2014), Financial Markets and Institutions, eighth edition, Pearson.

1. Financial system and financial intermediation
2. Theory of financial intermediation
3. Risks in financial intermediation
4. Financial instruments
5. Financial markets
6. Banking
7. Investment services and asset management
8. Insurance
9. Regulation
10. Re-regulation and supervision
11. Monetary policy
12. Payment systems

Nadotti, Porzio, Previati. Economia degli intermediari finanziari. McGraw-Hill, ultima edizione

The Course aims to provide an overview of the role and the main activities carried out by the banks in the investment banking business; the influence of the regulation; the organizational and management aspects; the technical characteristics and economic profiles of the corporate finance transactions; the definition, measurement and management of the typical risks.

Forestieri G. (2018), Corporate and Investment Banking, fourth edition, Egea, Milan.

1. PRELIMINARY CONCEPTS Money, time and risks. Present and future value, principal and interest. Contracts, exchange, prices. The risks.

2. FOUNDATIONS OF FINANCIAL CONTRACTS EVALUATION
2.1 EVALUATION IN CERTAINTY CONDITIONS Financial laws in certainty conditions. The exponential law. Annuities and mortgages. Internal rate of return on a financial transaction. Theory of financial equivalence laws.
2.2 FINANCIAL OPERATIONS IN THE MARKET. Value function and market price. The term structure. Duration indices and variability indices. Arbitrage valuations of floating rate notes. Interest Rate Swap. Term structure measurement. Term structure evolution. Introduction to financial options. Basic elements on equity options. Basic elements on traditional life insurance contracts.

David G. Luenberger
Investment Science
Oxford University Press (any edition)

Annamaria Olivieri, Ermanno Pitacco
Introduction to Insurance Mathematics
Springer, 2011

1. PRELIMINARY CONCEPTS Money, time and risks. Present and future value, principal and interest. Contracts, exchange, prices. The risks.

2. FOUNDATIONS OF FINANCIAL CONTRACTS VALUATION

2.1 VALUATION IN CERTAINTY CONDITIONS Financial laws under certainty conditions. The exponential law. Annuities and mortgages. Internal rate of return of a financial transaction. Theory of financial laws.

2.2 FINANCIAL OPERATIONS IN THE MARKET. Value function and market price. The term structure. Duration indices and variability indices. Arbitrage valuation of floating rate notes. Interest Rate Swap. Term structure measurement. Term structure evolution. Introduction to financial options. Basic elements on equity options. Basic elements on traditional life insurance contracts.

David G. Luenberger
Investment Science
Oxford University Press (any edition)

Annamaria Olivieri, Ermanno Pitacco
Introduction to Insurance Mathematics
Springer, 2011

1. Introduction (2 hours)
1.1 Premises for a comparative study
1.2 Forms of fund channelling
1.3 Classification of financial systems
1.4 Changes in today’s financial systems

2. The Historical Development of Financial Systems (2 hours)
2.1 The first stages of financial systems
2.2 Credit vs mutual aid
2.3 Early Financial Systems
2.5 The birth of modern financial systems

3 Market-oriented Systems (8 hours)
3.1 The UK financial system
3.1.1 Banks in the UK
3.1.2 Building societies
3.1.3 Insurance companies
3.1.4 Pension funds
3.1.5 Unit trusts
3.1.6 Investment trusts

3.2 The US financial system
3.2.1 Deposit-taking institutions
3.2.2 The Federal Reserve System
3.2.3 Non-depository institutions


4. Bank-oriented Systems (14 hours)
4.1 The German financial system
4.1.1 Banks and other deposit-taking institutions
4.1.2 Non-deposit institutions
4.1.3 The use of bond and equity markets in Germany

4.2 The French financial system
4.2.1 The French banking system
4.2.2 Specialist and non-deposit institutions
4.2.3 Financial markets in France

4.3. The Italian financial system
4.3.1 The development of the Italian financial system
4.3.2 The current position of the Italian financial system 141

4.4. Financial systems in Northern Europe
4.4.1 Banking systems in the Nordic countries
4.4.2 Other financial intermediaries in the Nordic countries
4.4.3 The evolution and integration of financial systems in Scandinavia
4.4.4 Monetary policy strategies in the Nordic countries

4.5. The Eurozone and the Banking Union
4.5. The Japanese financial system

5. Other kinds of financial systems (8 hours)
5.1 China’s banking and financial markets
5.2 The Russian banking and financial system
5.3 Islamic finance
5.4 African financial system: an overview

6. Follow-up issues (26 hours)
6.1. Intertemporal smoothing
6.2. Information and resource allocation
6.3. The Limitations of Markets: The Classical View
6.4. Corporate Governance
6.5. Competition in banking
6.6. Self-financing firms
6.7. Corporate savings
6.8. Bubbles and financial crises
6.9. Liquidity in asset markets and market crashes

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008

Allen F., Gale D, Comparing Financial Systems, MIT Press, 2000.

In recent decades, the volume of EU legislation on financial law has increased exponentially. Banks, insurers, pension funds, investment firms and other financial institutions all are increasingly subject to European regulatory rules, as are day to day financial transactions.
Serving as a comprehensive and authoritative introduction to European banking and financial law, the course is organized around the three economic themes that are central to the financial industry: (i) financial markets; (ii) financial institutions; and (iii) financial transactions. It covers not only regulatory law, but also commercial law that is relevant for the most important financial transactions.

European Banking and Financial Law
Matthias Haentjens, Pierre de Gioia-Carabellese

517/5000
The course program is divided into three sessions, dedicated respectively to an introductory part, to the analysis of financial markets and to financial institutions.
After analyzing the sources of European financial law, stock markets are examined in depth, including in terms of abuse and consumer protection.
Finally, the last part of the course is aimed at providing students with a solid foundation in the field of banking institutions, taking into account the most recent legislative reforms on the subject.

M. Haentjens, P. De Gioia Carabellese, European Banking and Financial Law, Routledge, 2015, pp. 1-151.

FINANCIAL SCIENCES
Wiener Processes and Ito’s Lemma
The Black-Scholes-Merton Model
Options on Stock Indices and Currencies
Greek Letters
Volatility Smiles
Basic Numerical Procedures
Exotic Options

Hull, J., Options, Futures, and Other Derivatives

(Actuarial Sciences)

The Mathematics of Compound Interest
The Future Lifetime of a Life Aged x
Life Insurance
Life Annuities
Net Premiums
Net Premium Reserves

Hans U. Gerber
Life Insurance Mathematics
Springer

Annamaria Olivieri, Ermanno Pitacco
Introduction to Insurance Mathematics
Springer

The course focuses on the relationship between financial statements and risk management with the aim of putting the students in the condition to evaluate the way that related company decisions are made and presented.
This course moves from the idea that financial statements are a mean to communicate the overall state of heath of the company and provide useful information regarding the measurement of different kinds of risks.
In this view the purpose of the course is to assist students in analysis of the financial information published by the companies in a way to understand the company prospective in the light of existent specific risks and how they are managed
Specific topics covered during the course:
- the investor and the financial statements,
- risk definition,
- the accountant’s mission in risk control,
- risk management,
- business and strategic risks,
- operational risks,
- financial risks,
- credit risks,
- liquidity risks,
- insurance risk and other risks,
- the European jurisdiction about financial statement,
- the European and Italian Jurisdiction about Financial Statements (Civil Code and IAS/IFRS),
- Directive 2013/34/EU,
- Legislative Decree 139/2015,
- the Italian jurisdiction about financial statements (Civil Code and IAS/IFRS),
- the introduction of IAS/IFRS in Italy,
- substance over form,
- fair value,
- presentation of financial statements,
- risks disclosure
- financial instruments: recognition and measurement; fair value option, derecognition of financial assets and financial liabilities, hedge accounting,
- leasing,
- specific issues regarding insurance companies,
- related party disclosure,
- revenue from contracts with customers,
- enterprise risk management,
- internal control,
- control and risk self-assessment,
- selected topics,
- analysis of financial statements of industrial, banking and insurance,
- non-financial information.

Academic materials are available on internet or will be distributed or indicated during the lessons.

MODULE 1
1 A rapid introduction to MATLAB
1.1 MATLAB basics: Preliminary elements; Variable assignment; Workspace; Arithmetic operations; Vectors and matrices; Standard operations of linear algebra; Element-by-element multiplication and division; Colon (:) operator; Predefined function; inline Function; Anonymous Function.
1.2 M-file: Script and Function
1.3 Programming fundamentals: if, else, and elseif scheme; for loops; while loops
1.4 Matlab graphics
1.5 Preliminary exercises on programming
1.6 Exercises on the financial evaluation basics

MODULE 2
2 Preliminary elements on Probability Theory and Statistics
2.1 Random variables
2.2 Probability distributions
2.3 Continuous random variable
2.4 Higher-order moments and synthetic indices of a distribution
2.5 Some probability distributions: Uniform, Normal, Log-normal, Chi-square, Student-t
3 Linear and Non-linear Programming
3.1 Some Matlab built-in functions for optimization problems
3.2 Multi-objective optimization: Determining the efficient frontier
4 Portfolio Optimization
4.1 Portfolio of equities: Prices and returns
4.2 Risk-return analysis: Mean-Variance; Effects of the diversification in an Equally Weighted portfolio; Mean-MAD; Mean-MinMax; VaR; Mean-CVaR; Mean-Gini portfolios
4.3 Bond portfolio immunization

MODULE 3
5 Further elements on Probability Theory and Statistics
5.1 Introduction to the Monte Carlo simulation
5.2 Stochastic processes: Brownian motion; Ito’s Lemma; Geometrical Brownian motion
6 Pricing of derivatives with an underlying security
6.1 Binomial model (CRR): A replicating portfolio of stocks and bonds; Calibration of the model; Multi-period case
6.2 Black-Scholes model: Assumptions of the model; Pricing of a European call; Pricing equation for a call; Implied Volatility
6.3 Option Pricing with Monte Carlo Method: Solution in integral form; Path Dependent Derivatives

F. Cesarone, Computational Finance: a MATLAB oriented modeling, draft

1: Introduction. The role and peculiarities of risk management in financial institutions. Risk management failure during the financial crisis.

2: Interest rate risk: the repricing gap model

3: Interest rate risk: the duration gap model and clumping

4: Interest rate risk: internal transfer rates (ITR)

5: Liquidity risk: funding and market risks, short and medium term control models, new liquidity requirements

6: Market risk: Value at Risk models: parametric approach. Estimating volatilities and correlations.

7: Market risk: mapping risk positions in the parametric approaches

8: Market risk: simulation approaches

9: Market risk: backtesting VaR models, VAR Limits and Expected Shortfall

10: Credit risk management. Scoring models for estimating the probability of default

11: Credit risk management. Market-based models for estimating the probability of default

12: Credit risk management. The recovery risk

13. Credit risk management: Portfolio models

14. Credit risk management: Internal rating system management and application (pricing and risk-adjusted performance measures)

15. Operational risk

16. Banking regulation: from Basel I to Basel III

17. Rethinking banking regulation: Basel 4?

1. Essential Readings
• John H. Hull, Risk Management and Financial Institutions, 4th Edition, John Wiley, 2015 (H)
• Philip Jorion, Financial Risk Manager Handbook, 6th Edition, John Wiley, 2011 (J)
• Resti A. and A. Sironi, Risk Management and Shareholders' Value in Banking, John Wiley, 2007 (RS).

2. Suggested Readings
• The economist, 2008. The confession of a risk manager (EC)
• European Parliament, Upgrading the Basel standards: from Basel III to Basel IV? (EP). http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587361/IPOL_BRI(2016)587361_EN.pdf
• Basel Committee, Basel III Monitoring Report, 28 February 2017. (BC) https://www.bis.org/bcbs/publ/d397.pdf
• Philipp Härle, Andras Havas, and Hamid Samandari, 2016. The future of bank risk management, McKinsey Quarterly, July .(MK) http://www.mckinsey.com/business-functions/risk/our-insights/the-future-of-bank-risk-management
• Ernest Young, Rethinking risk management, (EY) http://www.ey.com/Publication/vwLUAssets/EY-rethinking-risk-management/$FILE/EY-rethinking-risk-management.pdf

Introduction to the module. What is special about banks? What do banks do?
Adverse selection and moral hazard in financial markets. Theories of financial intermediation.

Universal banking and the bank assurance. Universal banking vs. specialist banking. International banking.

Comparative banking systems and issues: EU, US, UK, and Japanese banking system. Banking in emerging economies.

Banks’ financial statement and financial ratio analysis.

Central banking and bank regulation (1). Theory of central banking. Bank regulation and supervision.

Central banking and bank regulation (2): The Basel Accords. Laissez-faire banking and its limitations.

Theoretical models of financial intermediation.

Consolidation in banking.

Competitive issues in banking: market structure and performance SCP paradigm.
The bank production process and its productivity and efficiency.

International Bank Lending and Country Risk.

Workshops on banking data related resources.

• Casu, B., Girardone, C., Molyneux, P., (2015), Introduction to Banking (2nd Ed.), Pearson
• Heffernan, S., (2005), Modern Banking, John Wiley & Sons

1. Introduction (2 hours)
1.1 Premises for a comparative study
1.2 Forms of fund channelling
1.3 Classification of financial systems
1.4 Changes in today’s financial systems

2. The Historical Development of Financial Systems (2 hours)
2.1 The first stages of financial systems
2.2 Credit vs mutual aid
2.3 Early Financial Systems
2.5 The birth of modern financial systems

3 Market-oriented Systems (8 hours)
3.1 The UK financial system
3.1.1 Banks in the UK
3.1.2 Building societies
3.1.3 Insurance companies
3.1.4 Pension funds
3.1.5 Unit trusts
3.1.6 Investment trusts

3.2 The US financial system
3.2.1 Deposit-taking institutions
3.2.2 The Federal Reserve System
3.2.3 Non-depository institutions


4. Bank-oriented Systems (14 hours)
4.1 The German financial system
4.1.1 Banks and other deposit-taking institutions
4.1.2 Non-deposit institutions
4.1.3 The use of bond and equity markets in Germany

4.2 The French financial system
4.2.1 The French banking system
4.2.2 Specialist and non-deposit institutions
4.2.3 Financial markets in France

4.3. The Italian financial system
4.3.1 The development of the Italian financial system
4.3.2 The current position of the Italian financial system 141

4.4. Financial systems in Northern Europe
4.4.1 Banking systems in the Nordic countries
4.4.2 Other financial intermediaries in the Nordic countries
4.4.3 The evolution and integration of financial systems in Scandinavia
4.4.4 Monetary policy strategies in the Nordic countries

4.5. The Eurozone and the Banking Union
4.5. The Japanese financial system

5. Other kinds of financial systems (8 hours)
5.1 China’s banking and financial markets
5.2 The Russian banking and financial system
5.3 Islamic finance
5.4 African financial system: an overview

6. Follow-up issues (26 hours)
6.1. Intertemporal smoothing
6.2. Information and resource allocation
6.3. The Limitations of Markets: The Classical View
6.4. Corporate Governance
6.5. Competition in banking
6.6. Self-financing firms
6.7. Corporate savings
6.8. Bubbles and financial crises
6.9. Liquidity in asset markets and market crashes

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008

Allen F., Gale D, Comparing Financial Systems, MIT Press, 2000.

In recent decades, the volume of EU legislation on financial law has increased exponentially. Banks, insurers, pension funds, investment firms and other financial institutions all are increasingly subject to European regulatory rules, as are day to day financial transactions.
Serving as a comprehensive and authoritative introduction to European banking and financial law, the course is organized around the three economic themes that are central to the financial industry: (i) financial markets; (ii) financial institutions; and (iii) financial transactions. It covers not only regulatory law, but also commercial law that is relevant for the most important financial transactions.

European Banking and Financial Law
Matthias Haentjens, Pierre de Gioia-Carabellese

FINANCIAL SCIENCES
Wiener Processes and Ito’s Lemma
The Black-Scholes-Merton Model
Options on Stock Indices and Currencies
Greek Letters
Volatility Smiles
Basic Numerical Procedures
Exotic Options

Hull, J., Options, Futures, and Other Derivatives

(Actuarial Sciences)

The Mathematics of Compound Interest
The Future Lifetime of a Life Aged x
Life Insurance
Life Annuities
Net Premiums
Net Premium Reserves

Hans U. Gerber
Life Insurance Mathematics
Springer

Annamaria Olivieri, Ermanno Pitacco
Introduction to Insurance Mathematics
Springer

The course focuses on the relationship between financial statements and risk management with the aim of putting the students in the condition to evaluate the way that related company decisions are made and presented.
This course moves from the idea that financial statements are a mean to communicate the overall state of heath of the company and provide useful information regarding the measurement of different kinds of risks.
In this view the purpose of the course is to assist students in analysis of the financial information published by the companies in a way to understand the company prospective in the light of existent specific risks and how they are managed
Specific topics covered during the course:
- the investor and the financial statements,
- risk definition,
- the accountant’s mission in risk control,
- risk management,
- business and strategic risks,
- operational risks,
- financial risks,
- credit risks,
- liquidity risks,
- insurance risk and other risks,
- the European jurisdiction about financial statement,
- the European and Italian Jurisdiction about Financial Statements (Civil Code and IAS/IFRS),
- Directive 2013/34/EU,
- Legislative Decree 139/2015,
- the Italian jurisdiction about financial statements (Civil Code and IAS/IFRS),
- the introduction of IAS/IFRS in Italy,
- substance over form,
- fair value,
- presentation of financial statements,
- risks disclosure
- financial instruments: recognition and measurement; fair value option, derecognition of financial assets and financial liabilities, hedge accounting,
- leasing,
- specific issues regarding insurance companies,
- related party disclosure,
- revenue from contracts with customers,
- enterprise risk management,
- internal control,
- control and risk self-assessment,
- selected topics,
- analysis of financial statements of industrial, banking and insurance,
- non-financial information.

Academic materials are available on internet or will be distributed or indicated during the lessons.

1: Introduction. The role and peculiarities of risk management in financial institutions. Risk management failure during the financial crisis.

2: Interest rate risk: the repricing gap model

3: Interest rate risk: the duration gap model and clumping

4: Interest rate risk: internal transfer rates (ITR)

5: Liquidity risk: funding and market risks, short and medium term control models, new liquidity requirements

6: Market risk: Value at Risk models: parametric approach. Estimating volatilities and correlations.

7: Market risk: mapping risk positions in the parametric approaches

8: Market risk: simulation approaches

9: Market risk: backtesting VaR models, VAR Limits and Expected Shortfall

10: Credit risk management. Scoring models for estimating the probability of default

11: Credit risk management. Market-based models for estimating the probability of default

12: Credit risk management. The recovery risk

13. Credit risk management: Portfolio models

14. Credit risk management: Internal rating system management and application (pricing and risk-adjusted performance measures)

15. Operational risk

16. Banking regulation: from Basel I to Basel III

17. Rethinking banking regulation: Basel 4?

1. Essential Readings
• John H. Hull, Risk Management and Financial Institutions, 4th Edition, John Wiley, 2015 (H)
• Philip Jorion, Financial Risk Manager Handbook, 6th Edition, John Wiley, 2011 (J)
• Resti A. and A. Sironi, Risk Management and Shareholders' Value in Banking, John Wiley, 2007 (RS).

2. Suggested Readings
• The economist, 2008. The confession of a risk manager (EC)
• European Parliament, Upgrading the Basel standards: from Basel III to Basel IV? (EP). http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587361/IPOL_BRI(2016)587361_EN.pdf
• Basel Committee, Basel III Monitoring Report, 28 February 2017. (BC) https://www.bis.org/bcbs/publ/d397.pdf
• Philipp Härle, Andras Havas, and Hamid Samandari, 2016. The future of bank risk management, McKinsey Quarterly, July .(MK) http://www.mckinsey.com/business-functions/risk/our-insights/the-future-of-bank-risk-management
• Ernest Young, Rethinking risk management, (EY) http://www.ey.com/Publication/vwLUAssets/EY-rethinking-risk-management/$FILE/EY-rethinking-risk-management.pdf

Introduction to the module. What is special about banks? What do banks do?
Adverse selection and moral hazard in financial markets. Theories of financial intermediation.

Universal banking and the bank assurance. Universal banking vs. specialist banking. International banking.

Comparative banking systems and issues: EU, US, UK, and Japanese banking system. Banking in emerging economies.

Banks’ financial statement and financial ratio analysis.

Central banking and bank regulation (1). Theory of central banking. Bank regulation and supervision.

Central banking and bank regulation (2): The Basel Accords. Laissez-faire banking and its limitations.

Theoretical models of financial intermediation.

Consolidation in banking.

Competitive issues in banking: market structure and performance SCP paradigm.
The bank production process and its productivity and efficiency.

International Bank Lending and Country Risk.

Workshops on banking data related resources.

• Casu, B., Girardone, C., Molyneux, P., (2015), Introduction to Banking (2nd Ed.), Pearson
• Heffernan, S., (2005), Modern Banking, John Wiley & Sons

MODULE 1
1 A rapid introduction to MATLAB
1.1 MATLAB basics: Preliminary elements; Variable assignment; Workspace; Arithmetic operations; Vectors and matrices; Standard operations of linear algebra; Element-by-element multiplication and division; Colon (:) operator; Predefined function; inline Function; Anonymous Function.
1.2 M-file: Script and Function
1.3 Programming fundamentals: if, else, and elseif scheme; for loops; while loops
1.4 Matlab graphics
1.5 Preliminary exercises on programming
1.6 Exercises on the financial evaluation basics

MODULE 2
2 Preliminary elements on Probability Theory and Statistics
2.1 Random variables
2.2 Probability distributions
2.3 Continuous random variable
2.4 Higher-order moments and synthetic indices of a distribution
2.5 Some probability distributions: Uniform, Normal, Log-normal, Chi-square, Student-t
3 Linear and Non-linear Programming
3.1 Some Matlab built-in functions for optimization problems
3.2 Multi-objective optimization: Determining the efficient frontier
4 Portfolio Optimization
4.1 Portfolio of equities: Prices and returns
4.2 Risk-return analysis: Mean-Variance; Effects of the diversification in an Equally Weighted portfolio; Mean-MAD; Mean-MinMax; VaR; Mean-CVaR; Mean-Gini portfolios
4.3 Bond portfolio immunization

MODULE 3
5 Further elements on Probability Theory and Statistics
5.1 Introduction to the Monte Carlo simulation
5.2 Stochastic processes: Brownian motion; Ito’s Lemma; Geometrical Brownian motion
6 Pricing of derivatives with an underlying security
6.1 Binomial model (CRR): A replicating portfolio of stocks and bonds; Calibration of the model; Multi-period case
6.2 Black-Scholes model: Assumptions of the model; Pricing of a European call; Pricing equation for a call; Implied Volatility
6.3 Option Pricing with Monte Carlo Method: Solution in integral form; Path Dependent Derivatives

F. Cesarone, Computational Finance: a MATLAB oriented modeling, draft

Budget process in Italy, and evolution of public budgeting. Public Debt.
Cost Benefit Analysis in Theory and Practice.
Business Taxation (with special reference to Italy).

The same items shown above,in the Italian language section.

Monetary theory
Functions and forms of money. Value of money, monetary stability and inflation. Money and credit. Interest rate and rate of return on assets. The structure of interest rates. Interest rates, asset pricing and financial markets. Interest rates, exchange rates and movements of capital. Banks and money supply. Money demand and quantitative theory of money. Theories of endogenous money.

Monetary policy and transmission mechanisms
Effectiveness of monetary policy. Neutrality of money and dichotomy in the classical model. Monetary economy. Keynesian models. Monetarist models. The New Consensus in Macroeconomics and the IS-PC-MR model. The objectives of monetary policy. The instruments of monetary policy: mandatory reserves, interest rates, money supply and capital requirements of banks. The mechanisms and channels of transmission of monetary policy.

European monetary policy
The Maastricht Treaty. Independence and governance of the ECB. The ECB's strategy. The intervention instruments of the ECB. Credit risk regulation: from the Basel agreements to the European banking union.

Regulation of financial markets and financial crises
Stability and volatility of the financial markets. Currency crisis and financial crisis. Money and effective demand. Credit cycle and financial crises. The financial crisis of 2007 - 2009. Bank rescue and sovereign debt crisis. Risks of national default and euro crisis. Secular Stagnation and sterilization of monetary policies. Corporate Saving Glut. The excesses of liquidity and the instability of the financial markets.

Bain K., Howells P., Monetary Economics. Policy and its Theoretical Basis, Palgrave Macmillan, 2009.

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008.

Mishkin F.S., The Economics of Money, Banking and Financial Markets, Pearson- Addison Wesley, 2004.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

The course aims to provide students with the tools to learn about the lines of banking and financial law. In particular, the module dedicated to banking law will deepen: the system of sources of banking law, both European and national; the European banking union, the notion of a bank and financial intermediary; the role of the Bank of Italy; the different types of banks; banking activities, banking products and complex products; banking transparency; contracts with customers, consumer credit, the role of the ABF; then, with regard to financial activities, credit discounting, customer protection and leasing activities are deepened.

With reference, instead, to the part of insurance law, the other module concerns: the regulation of the insurance company, the insurance intermediaries, the insurance contracts, the sources, the insurance and reinsurance companies, the Directive c.d. "solvency II"; supervision of the insurance system, competition law and regulations of foreign companies; distribution of insurance products and various figures of intermediaries; non-life insurance classes; life insurance; forms of risk sharing in the insurance field with particular reinsurance analysis; co-insurance; compulsory insurance.

P. Bontempi, Diritto bancario e finanziario, Giuffré, last edition: from the cap. I to the chap. VIII included.
A. Donati-G. Volpe Putzolu, Manual of insurance law, Milan, Giuffrè Editore, last edition, 2012: part I, from the cap. II to the chap. V (from page 15 to page 47); part I, from the cap. VII to chap. IX (from page 57 to page 68); parts II / III, from the cap. XI to the chap. XXI (from page 77 to page 178); part III, from the chap. XXIII (from page 185 to page 198); part III, from the chap. XXV to the chap. XXVI (from page 205 to page 222).

Modul I - 30 hours
1. From the regulation on the budget of the civil code to the international accounting principles
- the civil code and the most recent innovations
- national accounting standards
- the process of homologation of international accounting standards and financial reporting
- the new generation accounting directives

2. The approved IAS principles: analysis of the main ones (among which)
2.1. IAS 1 and framework
2.2. IAS 2 inventories
2.3. IAS 11
2.3. IAS 16 fixed assets and plant
2.4. IFRS 16 leases
2.5. IAS 38 intangible assets
2.6. IAS 36 impairment
2.7. IAS 40 real estate investments
2.8. IFRS 9, IAS 39 - IFRS 7 financial instruments
2.9 IFRS 3 business combinations
2.10 IFRS 4 insurance contracts

Part II - 30 hours
1. Concrete applications of the accounting standards examined
2. Practical case: analysis of an IAS - IFRS balance sheet for an industrial sector company
3. The projects currently underway at the IASB: outline of the main new elements
4. The balance between financial accounting and management accounting
5. The accounting models for the preparation of the financial statements

Zanda G, Il bilancio delle società, Lineamenti teorici e modelli di redazione, Giappichelli, 2007
S. Pucci, L’iscrizione nel bilancio delle società quotate delle operazioni di gestione del rischio finanziario, Giappichelli, Torino, 2010

Lecture notes prepared by the teacher already published on the faculty website

Readings chosen from those selected by the teacher and indicated in the classroom
Other support material indicated from time to time in the classroom

It is possible to provide part of the material in English

The Course aims to provide an overview of the role and the main activities carried out by the banks in the investment banking business; the influence of the regulation; the organizational and management aspects; the technical characteristics and economic profiles of the corporate finance transactions; the definition, measurement and management of the typical risks.

Forestieri G. (2018), Corporate and Investment Banking, fourth edition, Egea, Milan.

The main contents of the course are the following:

The role and characteristics of risk management in banking.
Interest rate risk. The repricing gap model. The duration gap model. Internal transfer rates (ITR).
Liquidity risk. Funding and market liquidity risks.
Market risk. Value at Risk (VAR) models. Parametric approach. Volatility and correlation estimation. Simulation models. Backtesting. Limitations of VAR models. Expected Shortfall.
Credit risk. Scoring models. Capital market models. Recovery risk. Portfolio models. Rating systems.
Operational risk.
Regulation. The Basel Accords.
Value creation.

A. Resti, A. Sironi, Rischio e valore nelle banche. Misura, regolamentazione, gestione. Egea, 2008 (including updates on the website www.egeaonline.it).

Budget process in Italy, and evolution of public budgeting. Public Debt.
Cost Benefit Analysis in Theory and Practice.
Business Taxation (with special reference to Italy).

The same items shown above,in the Italian language section.

Monetary theory
Functions and forms of money. Value of money, monetary stability and inflation. Money and credit. Interest rate and rate of return on assets. The structure of interest rates. Interest rates, asset pricing and financial markets. Interest rates, exchange rates and movements of capital. Banks and money supply. Money demand and quantitative theory of money. Theories of endogenous money.

Monetary policy and transmission mechanisms
Effectiveness of monetary policy. Neutrality of money and dichotomy in the classical model. Monetary economy. Keynesian models. Monetarist models. The New Consensus in Macroeconomics and the IS-PC-MR model. The objectives of monetary policy. The instruments of monetary policy: mandatory reserves, interest rates, money supply and capital requirements of banks. The mechanisms and channels of transmission of monetary policy.

European monetary policy
The Maastricht Treaty. Independence and governance of the ECB. The ECB's strategy. The intervention instruments of the ECB. Credit risk regulation: from the Basel agreements to the European banking union.

Regulation of financial markets and financial crises
Stability and volatility of the financial markets. Currency crisis and financial crisis. Money and effective demand. Credit cycle and financial crises. The financial crisis of 2007 - 2009. Bank rescue and sovereign debt crisis. Risks of national default and euro crisis. Secular Stagnation and sterilization of monetary policies. Corporate Saving Glut. The excesses of liquidity and the instability of the financial markets.

Bain K., Howells P., Monetary Economics. Policy and its Theoretical Basis, Palgrave Macmillan, 2009.

Bain K., Howells P., The Economics of Money, Banking and Finance. A European Text, Pearson Education, 2008.

Mishkin F.S., The Economics of Money, Banking and Financial Markets, Pearson- Addison Wesley, 2004.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

1 – FINANCIAL VALUATION METHODS AND MODELS
The value and risk categories. Financial valuation methods. Discounted certainty equivalent approach. Discounted certainty equivalent models. On the choice between risky alternatives. Expected utility hypothesis. Option pricing theory. Risk-adjusted discounting method. Risk-adjusted discounting models. Mixed methods.

2 – RISK MANAGEMENT: CRITERIA AND RULES
Formal scheme. Sources and forms of risk. Market risk and credit risk. Stochastic models for market risk: (a brief review of) equity and currency risk, interest rate risk. Interest rate risk management and control. Semi-deterministic financial immunization theory. Stochastic financial immunization theory and hedging logic. Risk measures for the maximum potential loss (VAR, Risk Capital). Banking and insurance regulation and supervision, and risk culture: Basilea 2 and Solvency 2.

Handouts from teacher.

The course aims to provide students with the tools to learn about the lines of banking and financial law. In particular, the module dedicated to banking law will deepen: the system of sources of banking law, both European and national; the European banking union, the notion of a bank and financial intermediary; the role of the Bank of Italy; the different types of banks; banking activities, banking products and complex products; banking transparency; contracts with customers, consumer credit, the role of the ABF; then, with regard to financial activities, credit discounting, customer protection and leasing activities are deepened.

With reference, instead, to the part of insurance law, the other module concerns: the regulation of the insurance company, the insurance intermediaries, the insurance contracts, the sources, the insurance and reinsurance companies, the Directive c.d. "solvency II"; supervision of the insurance system, competition law and regulations of foreign companies; distribution of insurance products and various figures of intermediaries; non-life insurance classes; life insurance; forms of risk sharing in the insurance field with particular reinsurance analysis; co-insurance; compulsory insurance.

P. Bontempi, Diritto bancario e finanziario, Giuffré, last edition: from the cap. I to the chap. VIII included.
A. Donati-G. Volpe Putzolu, Manual of insurance law, Milan, Giuffrè Editore, last edition, 2012: part I, from the cap. II to the chap. V (from page 15 to page 47); part I, from the cap. VII to chap. IX (from page 57 to page 68); parts II / III, from the cap. XI to the chap. XXI (from page 77 to page 178); part III, from the chap. XXIII (from page 185 to page 198); part III, from the chap. XXV to the chap. XXVI (from page 205 to page 222).

Modul I - 30 hours
1. From the regulation on the budget of the civil code to the international accounting principles
- the civil code and the most recent innovations
- national accounting standards
- the process of homologation of international accounting standards and financial reporting
- the new generation accounting directives

2. The approved IAS principles: analysis of the main ones (among which)
2.1. IAS 1 and framework
2.2. IAS 2 inventories
2.3. IAS 11
2.3. IAS 16 fixed assets and plant
2.4. IFRS 16 leases
2.5. IAS 38 intangible assets
2.6. IAS 36 impairment
2.7. IAS 40 real estate investments
2.8. IFRS 9, IAS 39 - IFRS 7 financial instruments
2.9 IFRS 3 business combinations
2.10 IFRS 4 insurance contracts

Part II - 30 hours
1. Concrete applications of the accounting standards examined
2. Practical case: analysis of an IAS - IFRS balance sheet for an industrial sector company
3. The projects currently underway at the IASB: outline of the main new elements
4. The balance between financial accounting and management accounting
5. The accounting models for the preparation of the financial statements

Zanda G, Il bilancio delle società, Lineamenti teorici e modelli di redazione, Giappichelli, 2007
S. Pucci, L’iscrizione nel bilancio delle società quotate delle operazioni di gestione del rischio finanziario, Giappichelli, Torino, 2010

Lecture notes prepared by the teacher already published on the faculty website

Readings chosen from those selected by the teacher and indicated in the classroom
Other support material indicated from time to time in the classroom

It is possible to provide part of the material in English