| Effective Term: | 2024/05 |
| Institute / School : | Institute of Innovation, Science & Sustainability |
| Unit Title: | Banking and Finance |
| Unit ID: | BUECO3722 |
| Credit Points: | 15.00 |
| Prerequisite(s): | (Recomended STATS1900 OR BUGEN1502 - Preferably BUECO2622 completed) (BUECO1507 or BUECO1508 or BUECO1509) (At least 15 credit points from BUECO subject-area at 2000-2999 level) |
| Co-requisite(s): | Nil |
| Exclusion(s): | Nil |
| ASCED: | 080101 |
| Other Change: | |
| Brief description of the Unit |
This course is designed to give students an insight into the functions and services of commercial banks and non-bank financial institutions. It includes the business of banking bank lending bank investment bank deposits assets-liabilities management techniques the impact of government policy and regulation on banking and issues regarding the regulation and deregulation of the banking industry. |
| Grade Scheme: | Graded (HD, D, C, P, MF, F, XF) |
| Work Experience Indicator: |
| No work experience |
| Placement Component: No |
| Supplementary Assessment:No |
| Supplementary assessment is not available to students who gain a fail in this Unit. |
| Course Level: |
| Level of Unit in Course | AQF Level(s) of Course | | 5 | 6 | 7 | 8 | 9 | 10 | | Introductory | | | | | | | | Intermediate | | | | | | | | Advanced | | |  | | | |
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| Learning Outcomes: |
| Knowledge: |
| K1. | Examine the functions and services of commercial banks and non-bank financial institutions; |
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| K2. | Assess the role of commercial banks in the Australian financial system; |
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| K3. | Examine the financial performance of financial institutions, asset and liability management, security portfolio management and lending and credit risk management; |
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| K4. | Evaluate the latest developments in the regulatory environment of authorised deposit taking institutions; |
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| K5. | Judge the latest developments in the electronic delivery of new products and services. |
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| Skills: |
| S1. | Identify and explain the basic statutory and prudential guidelines governing financial institutions; |
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| S2. | Analyse the performance of commercial banks by undertaking financial statement interpretation and provide solutions to identified problems; |
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| S3. | Generate and evaluate decisions of financial institutions management within the context of risk; |
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| S4. | Analyse economic arguments and prepare written statements to communicate economic reasoning to a wide variety of audiences. |
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| Application of knowledge and skills: |
| A1. | Transfer and apply economic reasoning in considering the impact of regulatory bodies on the Australian banking system; |
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| A2. | Adapt knowledge and skills to a variety of contexts within the changing Australian banking system; |
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| A3. | Use initiative and judgement when analysing the economic content of media articles/programmes related to banking and finance. |
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| Unit Content: |
•Analytical Model of Bank Business Performance: The Australian financial environment, understanding financial statements of authorised deposit taking institutions, evaluating returns, risks and overall performance, gap management
•Asset, Liability and Capital Decisions : Managing liabilities, managing liquidity, managing the securities portfolio ,managing capital
•Managing Loans and Loan Portfolios: Credit organisation, selecting and managing the loan portfolio, commercial and consumer lending
•Hedging, speculation and risk taking behaviour: financial futures and forwards, interest rate options, interest rate swaps. |
| Graduate Attributes: |
| | Learning Outcomes Assessed | Assessment Tasks | Assessment Type | Weighting | | 1. | K1, K2, K4, K5, S3, S4, A1, A3 | Critical analysis of a current article relating to banking and finance from the business and/or financial press | Written evaluation of a recent article relating to banking and finance | 20-30% | | 2. | K3, K4, K5, S1, S3, S4, A2, A3 | Individual application activities to develop and enhance knowledge and skills in banking and finance | Written assignment or case study | 10-20% | | 3. | K1, K2, K3, S1, A1, A2 | Calculations and problem solving; Written paragraph type explanations | Written Examination | 50-70% |
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