Authorised by Academic Registrar, April 1996
Objectives On completion of this subject students should at an advanced level be able to understand the contribution of the banking sector to the economy; be familiar with the risk return trade-off faced by banks in many aspects of bank operation; be aware of different techniques for managing risk - including their practical implementation using the treasury dealing room facility; be able to analyse the impact of bank policies on bank performance; be knowledgeable as to the need for central bank prudential supervision of the banking sector and its current implementation in the Australian context.
Synopsis Topics include functions and objectives of banks; the risk return trade off; prudential supervision; asset management; loan pricing; liabilities and equity; off balance sheet banking; asset-liability management; measuring bank performance and strategic planning for banks.
Assessment Assignment: 50% + Examination (3 hours): 50%