SUSTAINABILITY IN BANKING AND FINANCIAL SERVICES

The course contributes to the educational objectives of the master’s degree. The distinguishing feature of this course is that it brings together the subjects of banking, financial services, and sustainability.
The course sets out to study the process of financial intermediation and the services through which this intermediation occurs. Special attention is given to financial advisory services and corporate banking services. Further, students will be provided with an overview of the main changes recently experienced by the financial intermediation industry, with a focus on changes related to sustainability issues.
At the end of the course, students will have learned about a broad range of topics related to banking, financial services, and sustainability, which are on the agendas of policymakers.

The objective of this course is to develop a broad understanding of the framework and the evolution of the banking industry. The course concentrates on core competencies that are relevant for careers in the corporate banking industry and in the investment advisory industry and equips students with the skills they need to understand how the banking industry has responded to sustainability challenges.

Knowledge of calculus and probability at the BSc level is assumed. Some knowledge of the basic concepts of modern finance is an advantage.

- The roles of governments in addressing sustainability concerns (e.g., 2016 Paris climate agreement, 2019 EU Green Deal, EU’s Taxonomy Regulation).

- The transition from traditional banking to sustainable banking.

- Financial Advisory Services.

- Socially responsible investments (SRI) and the role of household preferences.

- Investment funds and sustainable funds.

- Corporate banking services.

- Bank lending and its recent goals.

- Financial intermediation and the screening process.

- Loan origination and monitoring.

- The risk of greenwashing.

Carè R., 2018. Sustainable Banking: Issues and Challenges, First Edition. Palgrave Macmillan.

Freixas X. and J.-C. Rochet, 2008. Microeconomics of Banking, Second Edition. Cambridge, Mass.: MIT Press.

Hill, J., 2020. Environmental, Social, and Governance (ESG) Investing: A Balanced Analysis of the Theory and Practice of a Sustainable Portfolio. Academic Press.

Morningstar, 2020, How Does European Sustainable Funds' Performance Measure Up?

Morningstar, 2021. Sustainable Funds U.S. Landscape Report

Schoenmaker, D., and Schramade, W., 2018. Principles of Sustainable Finance. Oxford University Press.

- Written, closed book exam

Note: Those who have actively participated in the lectures will receive a participation mark that, at their discretion, can contribute to 30% of the final mark, with the remaining 70% based on their performance in the written exam.

In-class interactive lectures and real case discussion.

English

The course is carried out in collaboration with the extended partnership GRINS - Growing Resilient, INclusive and Sustainable, code PE0000018, CUP H73C22000930001, public notice no. 341/2022 of the National Recovery and Resilience Plan ("NRRP"), Mission 4 - Component 2 - Investment 1.3, funded by the European Union - NextGenerationEU. As part of the course, meetings with companies’ testimonials involved in the project may be offered, focusing on the development of practical knowledge in the subject matter, as well as the results of the
project itself. This course covers topics related to Spoke 1 Firms’ sustainability - Work Package n. 4.

written