Overview

Major issues involved in the financial management of banks and other deposit-taking financial institutions. Topics include performance measurement; asset/liability management for liquidity risk, credit risk, interest rate risk; and regulation of depository institutions.

Offerings

S1-01-CLAYTON-FLEXIBLE

Rules

Enrolment Rule

Contacts

Chief Examiner(s)

Dr Ozlem Dursun de Neef

Learning outcomes

On successful completion of this unit, you should be able to:
1.

outline the major risks and related prudential requirements faced by banks and to assess factors to consider in managing these risks

2.

evaluate the various mathematical techniques available to manage interest rate risk including the maturity model, the duration model and the repricing model

3.

evaluate mathematical models in relation to managing credit risk for individual loans and to the loan portfolio

4.

identify suitable qualitative and quantitative indicators of financial institutions' performance

5.

distinguish the various sources of commercial and retail debt funding including liability management, and analyse how the current Australian banking system provides access to such funds

6.

sequence the Basel framework as used in Australia, but emanating from the Basel Committee at the global level

7.

be able to clearly and effectively communicate solutions, applying the knowledge in above areas, in a distinctly logical manner in relation to activities dealing with the management of financial institutions and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFC3170.

Teaching approach

Active learning

Assessment

1 - Within semester assessment

Scheduled and non-scheduled teaching activities

Seminars
Tutorials

Workload requirements

Workload

Learning resources

Technology resources

Other unit costs

Costs are indicative and subject to change. Electronics, calculators and tools: $100