units

BFF2401

Faculty of Business and Economics

18 September 2017 20 April 2024
Monash University

Undergraduate - Unit

This unit entry is for students who completed this unit in 2014 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

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6 points, SCA Band 3, 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered, or view unit timetables.

LevelUndergraduate
FacultyFaculty of Business and Economics
Organisational UnitDepartment of Banking and Finance
OfferedCaulfield First semester 2014 (Day)
Caulfield Second semester 2014 (Day)

Synopsis

This unit examines the major risks and issues faced by Australian financial institutions within the context of the global environment. Topics include an introduction to the Australian banking environment, bank performance, management of bank risks including credit, capital, liquidity and interest rate risk, loan pricing, liability management, investment management and capital adequacy.

Outcomes

The learning goals associated with this unit are to:

  1. examine the main risks and related prudential requirements faced by banks and to assess factors to consider in managing these risks
  2. appraise suitable qualitative and quantitative data or characteristics to assess bank performance
  3. understand asset and liability management of a financial institution
  4. contrast various security portfolio strategies available to the bank, and explain optimal strategies when interest rates change
  5. understand non-market related and derivative contracts used by financial institutions
  6. be able to sequence the Basel prudential framework as instigated within the Australian context, 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 commercial banking and finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFF2401.

Assessment

Within semester assessment: 30%
Examination: 70%

Chief examiner(s)

Dr Kym Brown (First semester)
Prof Michael Skully (Second semester)

Workload requirements

Minimum total expected workload equals 144 hours per semester

Prerequisites

AFF1300 or BFF1300

Prohibitions

AFC3170, BFC3170, AFW2401, BFW2401, AFF2401