Compulsory prerequisites required (Propedeuticità) are published on the web site: https://lt-ea.unibg.it/it/node/122
The course focuses on credit intermediation, one of the main functions of banks and other FIs, and corporate finance. Our analysis of credit intermediation will require students to develop an in-depth understanding of on-balance and off-balance sheet lending as well as the management of credit risk. As for what concerns corporate finance, the students will acquire knowledge related to the valuation of investment decisions and the financing strategies of firms.
Part related to credit intermediation: 1) the role of financial institutions; 2) commercial banks; 3) on-balance sheet activities and credit risk; 4) off-balance sheet activities. Part related to corporate finance: 1) Introduction to corporate finance; 2) Investment decision rules, capital budgeting and the valuation of stocks; 3) long-term financing; 4) short term financing
Part related to credit intermediation:
Anthony Saunders & Marcia Cornett, Financial Institutions Management: A Risk Management Approach, McGraw-Hill Education, 9th Edition (2018)
Part related to corporate finance:
Jonathan Berk & Peter DeMarzo, Corporate Finance, Pearson, 4th Edition (2017)
Further information on how to use the textbooks will be provided on the moodle page and at the beginning of the course
The in-class lessons will include presentations, exercises and case-study analyses.
There will be the opportunity to take a mid-term exam (and a final exam). The exam will consist of multiple-choice questions, true/false questions and short exercises.