Financial Markets and Institutions

Non applicable

Teaching Methods (TM):

TM1 – Lectures focused on the transmission of key concepts, incorporating targeted questioning and the use of digital interaction platforms.
TM2 – Practical classes devoted to the discussion of real-world practical cases, adopting a flipped classroom methodology.
TM3 – Pratical classes involving the presentation and group discussion of assignments prepared by students (see periodic assessment methodology).

Course objectives (CO):

CO1 – To have a rigorous and in-depth understanding of the different entities that compose the national and european financial system and the financial markets associated with it.
CO2 – To understand the origins of recent financial crises and the mechanisms implemented to avoid them.
CO3 – To understand the relevance of sustainability in the context of investment and financing decisions.

Leraning outcomes (LO):

LO1 – To be able to distinguish and characterize the different entities that make up the Portuguese and European financial system, their evolution and the competences attributed to them/activities permitted, with particular emphasis on those that are part of the banking and monetary system;
LO2 – To be able to identify the various segments of the financial markets, their respective purposes and modes of operation;
LO3 – To understand the determinants of recent financial crises, as well as their modes of propagation and possibilities for prevention;
LO4 – To understand the emerging interconnection between investment and financing decisions and sustainability issues.

1. 1. FINANCIAL SYSTEM
   1.1 Portuguese and European financial system: classification, recent evolution and future perspectives
   1.2 Regulatory framework and attributes of the main entities of the financial system
   1.4 European monetary policy
2. CREDIT INSTITUTIONS
   2.1 The banking business: from the traditional model to the digital model
   2.2 Main active and passive operations in banking activity
   2.3 Main types of risk in banking activity
   2.4 Risk and performance indicators
3. FINANCIAL MARKETS
   3.1 Primary market versus secondary market
   3.4 Money market versus capital market
   3.6 Foreign exchange market
   3.7 Derivatives market
4. FINANCIAL CRISES
   4.1 Recent financial crises
   4.2 Causes, contagion effect and transmission channels
   4.3 Prevention and resolution models
5. SUSTAINABLE FINANCE
   5.1 Principles of responsible investment
   5.2 Financing instruments sustainable
   5.3 Financial indicators of sustainability

The assessment will be carried out according to one of the following methods:

A) PERIODIC ASSESSMENT (Regular Examination Period):

• MA1 - Carry out 1 individual written test about items 1 to 5 of the syllabus (80%) - The test is closed-book, and the minimum classification required in the test is 8.0 values (in a 0-20 scale).
• MA2 - Completion of 1 group project assignment (40%) - Each group may comprise a maximum of 3 students. The project must be presented orally in class and will include an individual defence. The use of any AI tool is not permitted, except for tools supporting article research, writing and presentation preparation, namely slide design. Any AI tools used must be clearly and explicitly identified in the project presentation slides, includind any prompt used. The minimum individual classification required for this assessment component is 8.0 values.
• Under this assessment system, students must have a minimum attendance of 80% in classes. Students with Working-Student Status are exempt from this requirement. However, they must be present on the date of the test and on the agreed date for the presentation of the group work they belong.
• Students who obtain a final grade of at least 9.5 values will pass the course under this assessment system, according to the following formula: CF = 80% x MA1 + 42% x MA2.

B) EXAM ASSESSMENT (Resit and Special Examination Periods):

• MA3 - Individual written exam (100%) - Students will pass the curricular unit if they obtain a mark of no less than 9.5 values.

• In the event of well-founded suspicion of fraud detected during the realization of the written test/exam, the student will be called to take an oral examination to verify the knowledge demonstrated. This verification is carried out by a panel composed of the course unit lecturer and two additional lecturers from the same field. Should the student fail to prove that he possesses the knowledge demonstrated in the written test/exam, it will be invalidated.

NAO