MOD. 1 CORPORATE BANKING
- Overview
- Assessment methods
- Learning objectives
- Contents
- Full programme
- Bibliography
- Delivery method
- Teaching methods
- Contacts/Info
There are no explicit prerequisites. A good understanding of basic Principles of “Economics of Financial Intermediaries” is however recommended.
Final written test, which lasts an hour and a half, divided in 5 questions.
It is most important to demonstrate the ability to critically analyze the contents and make connections with economic context.
The course aims at providing students with a broad overview of sources of funding for companies. The topics are analyzed in the economic perspective of the entrepreneurs, above all to highlight the available solutions for small and medium enterprises (SMEs). The course focuses on the following aspects and instruments to solve financial problems of the enterprise: credit contracts and banking services; financial advisory services; corporate and investment banking; institutional investor activity in risk capital (venture capital and private equity); structured finance. The final section of the course examines the solutions supplied by banks to distressed firms.
At the end of the course the student will be able to know and understand the main economic and financial variables used to evaluate different type of funding, capital increase and efficient way of risk management.
Results should be analysed by the student in order to make a judgment related to the acceptability of financing decisions and their impact on company’s risk exposure.
The role of the markets and the financial intermediaries in satisfying the financial needs of the various types of corporations
1. The role of the markets and the financial intermediaries in satisfying the financial needs of the various types of corporations.
2. Bank-firm relationship. Evolution and development perspectives in the evaluation criteria of the financial needs of a firm: internal rating systems and the development of corporate banking services.
3. The main financing sources of firms:
a) The credit channel: the short, medium and long term credit (brief overview); pool financing; leasing; subsidized credit; surety credit.
b) The role of CONFIDI for supporting SMEs.
c) The access to the market for financing through debt (mini-bond, bond, subordinated and hybrid instruments) and capital instruments (brief overview).
d) Listing of financial instruments on the Stock Exchange (brief overview).
4. Risk management and hedging:
a) Payment services and treasury management for the management of liquidity risk: home banking and cash management.
b) Derivatives and insurance services for the hedging of credit risk and market risk (hints).
c) The securitization of corporate credits: a way to get funds and externalize credit management.
5. Consulting and financial advisory services:
a) Financial information and consulting services.
b) Credit management services: factoring.
c) Counselling for transactions on the primary and secondary securities market.
6. Interventions on the risk capital and support in the structured finance operations:
a) Acquisitions of companies by banks; Italian banks and the market of acquisitions.
b) The role of closed funds.
c) Private equity and venture capital in Italy: an analysis of the main forms of intervention (start up financing, LBO and MBO).
d) Project finance.
7. The role of banks in the resolution of crisis of firms:
a) Bank credit restructuring.
b) Business recovery plan.
The course material required is as follows:
1. Banca d'Italia, Relazione annuale
2. Forestieri G., Corporate e investment banking, Egea, Milano, 2015
3. Anderloni L. - Braga M.D., Il finanziamento delle startup e delle PMI, Pearson, Milano, 2019
Teaching lessons for a total of 40 hours. Business Cases will be discuss in class.
The lecturer meets the students according to a specific timetable published on the e-learning platform of the course.