Comparative Financial Systems
PROF. ELENA BECCALLI
COURSE AIMS
The course is designed to provide the student with a comparative analysis of the
organisational and institutional frameworks of the main financial systems at an
international level. For this purpose, the course will illustrate the distinctive aspects
of financial systems oriented primarily to markets and those oriented toward
intermediaries as well as the reasons that have historically led to such differences.
A special emphasis is placed on the types of intermediaries operating within the
different systems and the different operating models adopted by banks, as well as
the structural and operational characteristics of the securities markets at an
international level. The course ends with a review of financial crises in
industrialised nations and emerging markets, and the role of those crises in
delineating the current organisation of financial systems.
COURSE CONTENT
INSTRUCTIONAL OBJECTIVES THAT THE STUDENT SHOULD HAVE ACHIEVED BEFORE TAKING THE
COURSE
Before taking the course, the student should be familiar with:
– the economic functions of financial intermediaries;
– the types of intermediaries operating in a financial system;
– how regulated markets work;
– the structure of the financial statements of credit intermediaries.
INSTRUCTIONAL OBJECTIVES OF THE COURSE
Financial systems at an international level
After having completed the study of the material, the student is expected to be
capable of:
– analysing from a comparative standpoint the nuances of market-based financial
systems and bank-based systems in terms of the means of financing businesses,
the mix of household financial portfolios, types of consumer financing;
– understanding the structural development of the main financial systems (US,
UK, France, Germany, Japan, and Italy) so as to understand the current
differences.
Financial intermediaries at an international level
After having completed the study of the material, the student is expected to be
capable of:
– understanding the types of intermediaries operating in the international
financial systems, as well as their importance in relation to the different
systems;
– understanding the distinctive aspects of the originate-and-distribute and the
originate-and-hold banking intermediation models;
– comparing European bank intermediaries in terms of earnings, capital and
operating efficiency;
– interpreting the mergers and acquisitions processes in banking markets.
Securities markets at an international level
After having completed the study of the material, the student is expected to be
capable of:
– understanding the structural and operational aspects of securities markets at an
international level (London Stock Exchange, New York Stock Exchange and
NASDAQ);
– understanding and interpreting the empirical evidence in relation to the risk and
return on financial instruments in international markets.
Financial crises
After having completed the study of the material, the student is expected to be
capable of:
– interpreting the dynamics of financial crisis (USA, Argentina and Southeast
Asia), banking crises (Japan, Scandinavia, and Russia) and speculative bubbles
(Internet stocks);
– understanding the crisis originating from sub-prime mortgages in relation to
issues regarding the financing of households and bank management models;
– understanding the dynamics of the Northern Rock case.
At the end of the course, the student is also expected to be able to interpret the
financial statistics compiled by institutions such as the European Central Bank and
the Federal Deposit Insurance Corporation.
READING LIST
Considering the course's particular structure and the analysis over time of certain
subjects, it is not possible to identify specific textbooks for all topics covered in class.
Reading references will thus be indicated in class.
Various readings and supplemental instructional materials will be made available
through the Blackboard platform on the site dedicated to the course.
Recommended reading
E. BECCALI, Principles of banking and finance, London University Press, 2008 (Chapters 2, 3 and
4).
F. ALLEN-D. GALE, Comparing financial systems, MIT Press, 2001 (Chapters 2, 3 and 9). [ISBN
0262511258].
TEACHING METHOD
The course will be taught through lectures (90% del course) and presentations by sector
experts (10%).
ASSESSMENT METHOD
The examination consists of a written test with five questions; the test will run for 90
minutes. An interview is optional, but not integrative.
NOTES
Further information can be found on the lecturer's webpage at
http://docenti.unicatt.it/web/searchByName.do?language=ENG or on the Faculty notice
board.