BFC3170 - Management of financial intermediaries - 2017

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.

The learning goals associated with this unit are 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.

Within semester assessment: 40% + Examination: 60%

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. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information

Dr Kym Brown

AFC2140 or BFC2140

AFF2401, BFF2401, AFW2401, BFW2401, AFC3170