BFC3170 · Financial intermediation

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

Assessment

The Handbook does not list a final examination among the assessment items. That is not a guarantee there is none.

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Requisites

Learning outcomes

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.

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Student experience, not official rules. Nothing here changes what the Handbook says.