A85334 Economia e gestione degli intermediari finanziari

All students who have attended the basic course (whose notions are preliminary) must participate in the experiential laboratory. Not allowed students who have not attended the course.

At the end of the laboratory the student will be able to:

• Understand the main critical areas in the management of the financial performance of a Bank (NIM, liquidity, ALM and Capital);
• Identify the key risks that jeopardize the achievement of the objectives set by the Bank in these macro areas;
• Understand the capital markets instruments offered by the investment banks to the CFO of a Bank to hedge such risks;
• Come up with adequate hedging strategies and/or solutions to specific situations/materialized risks

Students will attend the laboratory in groups of at most three members. Students are responsible for organizing these groups. At the end of the course they will be required to:

1. Find and quantify the risks embedded in the structural position of a sample bank.
2. Suggest a viable hedging/restructuring strategy.
3. Quantify the impacts on the four macro areas (NIM, liquidity, ALM and Capital) of the proposed strategy.

The laboratory will mainly consist of sessions in the Bloomberg laboratory of the library, either with assistance of the instructors (listed in the syllabus below) or independently arranged by the groups, subject to reservation of the Bloomberg workstations with the Library Bloomberg desk.

The last two sessions, in which students will discuss with instructors the results of their analysis will be held in ordinary classrooms.

“Futures and Options” Hull

The Annual Report of a Bank (e.g. Intesa Sanpaolo SpA)

Students are required to gather any information concerning the market from publicly-available sources (The Wall Street Journal, The Financial Times, Il Sole24ore, MF etc.)

Optional Reading:

“Economia della Banca” Ruozi

Results of the laboratory will be graded within  the range 0-3 points not only on the basis of the portfolio performance, but mainly on the basis of the quality of the implementation.