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.

Learning will be assessed through:
- Written exam with open-ended questions, closed-book
- Presentation and discussion of a scientific article, integrated with material prepared in concise form
The final grade will be determined 70% based on performance in the written exam and 30% based on the presentation and discussion of the scientific article. The presentation and discussion of a scientific article can be carried out during the course; in this case, the exam will include only the written part. The scientific article will be assigned, upon the student’s formal request, one month before the exam session the student intends to attend. If the student does not accept the final course grade and wishes to retake the exam, the student must retake both the written exam and the presentation and discussion of a new article, with related material prepared in concise form.

written and oral

The written exam consists of a large number of questions, each of which has an assigned score indicated next to it. Each answer is evaluated according to the following criteria:
- Incorrect or missing answer: 0 points
- Correct but incomplete answer: half of the possible points
- Correct and complete answer: full points
The final score of the written exam is the sum of the points obtained for all questions, divided by the maximum possible score. This result accounts for 70% of the final course grade, while the remaining 30% is determined by the presentation and discussion of a scientific article, integrated with material prepared in concise form.

In-class interactive lectures and real case discussion.

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.