Financial Markets and Institutions - ECON-09/B

The research group studies the financial system and the relationships that develop within it in the interests of corporations, investors, and the intermediaries themselves. Particular attention is paid to the relations between companies, and investors filtered through banks and markets in compliance with an increasingly complex system of rules.

Social impact investing and ESG factors

The literature has recently focused on social business models where the purpose of the investment is not purely the generation of a financial return but, above all, the pursuit of a sustainable social impact in the long term. In this case, one increasingly speaks of social impact investment. The strand of research related to ESG (Environment, Social, Governance) indicators within the Socially Responsible Investment (SRI) concept is no less critical. In this case, we are talking about intermediaries who invest in companies by looking at financial returns and a series of criteria that these companies must meet to protect the environment, the most disadvantaged social groups, and good governance practices. The funds often practise active shareholding to push these companies to take initiatives that are more in line with ESG criteria.

SME financing and microfinance

SMEs play a dominant role in most economies - developed and underdeveloped - and the literature has extensively studied the sources of finance that characterize the life cycle of SMEs. In developing countries, SMEs are even more financially fragile, and about 70 per cent of small- and micro-sized enterprises (MSMEs) in emerging markets cannot access credit. Although these percentages vary considerably from region to region, the phenomenon is particularly prevalent in Africa and Asia. Microfinance, therefore, emerged as a solution to this problem. Impact investments focusing on environmental, social, and governance dimensions represent the group's new research interests.

Efficiency and M&A strategies in the banking sector

The crises that have affected the financial system have shown how the evaluation of the performance of financial intermediaries depends not only on cost and revenue factors but also on corporate governance and regulatory aspects. In this context, it is essential to verify whether the restructuring of the banking system, which took place through aggregation operations that mainly involved smaller banks, will have the desired effects in terms of greater efficiency. In a banking system undergoing profound transformation, it is also essential to understand which business model can guarantee greater future profitability while respecting the system's stability. Digital transformation and artificial intelligence are the tools that will make Fintech an alternative and complementary way to traditional banking, helping redefine the future financial system.

Corporate governance and banking system stability

The global financial crisis of 2008 and successive corporate scandals have increased the system's instability and called into question the effectiveness of current corporate governance (CG) structures and processes. It is, therefore, useful to understand the governance structure most conducive to effective and efficient decision-making, leading to the stated financial objectives and improved management oversight and risk management. Research topics include gender diversity, risk culture, attitudes, beliefs and behavior of board members and their contribution to value creation for the bank's stakeholders.

Investments, savings, and financial education

As an economic policy tool, financial education is critical at the international and national level to encourage savers to make informed economic choices, increase their financial well-being, and prevent economic losses. With this in mind, the group's research complements that conducted at the national level by the Association of Economists of Financial Intermediaries (ADEIMF).

Banking and insurance risk management

The management of risks of financial intermediaries has to deal with new and little-known risk factors. This stimulates research on the relationships between environmental, climate, cyber and ‘misconduct’ risks and banking activities regarding performance and spill-over effects on traditional risks.