AFF2401

Commercial banking and finance

Ms Kathy Avram

6 points
* One 2-hour lecture and one 1-hour tutorial
* Caulfield Distance
* First, second semester
* Prerequisite: AFX1300

Objectives On the completion of this subject students should be able to demonstrate an understanding of the different aspects of bank performance; appreciate the constraints placed on this by regulation; analyse the main risks faced by banks; assess the alternative approaches to measurement and management of these risks.

Synopsis An overview of commercial banking and an introduction to the concepts and issues involved in the decision-making processes of bank management. Topics include the commercial banking environment; banking risks and capital adequacy; liquidity management; lending principles and policies; investment management.

Assessment Assignment: (approximately 2000 words): 30%
* Examination (3 hours): 70%
* Students must obtain a minimum of 50% in the exam to be eligible to pass this subject.

Prescribed texts

Shanmugan B and others Bank management Jacaranda Wiley, 1992