Course coordinator
Mr Mark Tanner
A number of industry expert guest lecturers will be deliverying this course, more details will be provided via Blackboard.
Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
This course will consider the financial management of financial institutions and the assessment of credit risk as applied to bank lending. Considerable industry involvement through guest lecturers and presenters will result in a practical understanding of risks assessment, financial distress prediction, asset/liability management, securitisation, bank regulation, bank profitability and the international banking system.
The course will help students develop a broad understanding of how financial institutions operate and covers the traditional role of financial institutions, including banks and funds, and how their operation has changed in recent years. Understanding regulation, risk management and performance measurement are some of the key tasks. Securitisation, corporate capital raising and the role of credit rating agencies are explored. Guest lecturers TBA.
Course requirements
Prerequisites
You'll need to complete the following courses before enrolling in this one:
FINM2411 or 2415 or 3401
Restrictions
Restricted to students in the BAdvFin&Econ(Hons) and BCom(Hons) programs
Course contact
Course staff
Lecturer
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Please note: Teaching staff do not have access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you email business.mytimetable@uq.edu.au from your UQ student email account with the following details:
- Full Name
- Student ID
- Course Code
Aims and outcomes
The primary purpose of this course is for students to develop a broad understanding of how financial institutions operate locally and in a global context.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Investigate the operations of financial institutions including ethical practices and the role of regulators
LO2.
Analyse risk management in finance institutions
LO3.
Measure the performance of financial institutions
LO4.
Appraise securitisation, corporate capital raising, credit ratings and international banking
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Examination |
In-Semester Examination
|
20% |
2/09/2024
During the lecture time |
| Paper/ Report/ Annotation | Individual Research Assignment | 50% |
30/09/2024 2:00 pm |
| Paper/ Report/ Annotation | Final Take Home | 30% |
4/11/2024 - 11/11/2024
This assessment will be scheduled by the school and run for 48 hours during the examination period |
Assessment details
In-Semester Examination
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 20%
- Due date
2/09/2024
During the lecture time
- Learning outcomes
- L01, L02, L03, L04
Task description
The exam will be multiple choice and will cover content from the first 6 topics. More details will be provided via Blackboard.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI) or Machine Translation (MT). Students are advised that the use of AI or MT technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | no planning time minutes |
|---|---|
| Duration | 60 minutes |
| Calculator options | (In person) Casio FX82 series or UQ approved , labelled calculator only |
| Open/closed book | Closed Book examination - no written materials permitted |
| Exam platform | Learn.UQ |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Late submission
Exams submitted after the end of the submission time will incur a late penalty.
Individual Research Assignment
- Mode
- Written
- Category
- Paper/ Report/ Annotation
- Weight
- 50%
- Due date
30/09/2024 2:00 pm
- Learning outcomes
- L01, L02, L03, L04
Task description
In the individual research assignment, students are to research a specific financial instrument, and a variety of valuation techniques relative to that instrument, as well as the relative risks of holding that instrument. Students will also need to think about things more from the issuers side. Students will need to read academic papers as well as regulatory information to answer short answer, essay style and numerical questions. It will involve the use of excel, and a bibliography will be required.
This research based assignment will roughly take the following form. Students will need to:
1. Identify how an issuer of certain financial instruments makes money. This will require research into the associated financial theory as well as contemporary market conditions.
2. Given the knowledge of how issuers make money, students will then need to identify what risks the issuance of said instruments involves. Reference to current market conditions will be needed here.
3. Students will then need to examine how an issuer's risk profile changes in certain scenarios. This will require the use of excel and a solid understanding of financial theory as well as the consequences of certain macoeconomic events.
4. Students are then required to research the position of the Australian regulator relative to said financial instrument and explain what restrictions this imposes on issuers.
Further details on the assignment will be provided on the Blackboard site. The assignment will have a maximum word count of 3,500 words.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI) or Machine Translation (MT). Students are advised that the use of AI or MT technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Final Take Home
- Mode
- Written
- Category
- Paper/ Report/ Annotation
- Weight
- 30%
- Due date
4/11/2024 - 11/11/2024
This assessment will be scheduled by the school and run for 48 hours during the examination period
- Learning outcomes
- L01, L02, L03, L04
Task description
The questions will be a mixture of short answers and excel questions. More details will be provided during the semester.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI) or Machine Translation (MT). Students are advised that the use of AI or MT technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0 - 29 |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30 - 46 |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47 - 49 |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50 - 64 |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65 - 74 |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75 - 84 |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85 - 100 |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
Grades will be allocated according to University-wide standards of criterion-based assessment.
Supplementary assessment
Supplementary assessment is available for this course.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Library resources are available on the UQ Library website.
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 |
Lecture |
Topic 1 - Introduction to financial systems Topic 1 - Introduction to Financial Systems Industry Expert - Richard Howes Learning outcomes: L01, L02, L03, L04 |
Week 2 |
Lecture |
Topic 2 - Promoting Financial System Stability Learning outcomes: L01, L02, L03, L04 |
Tutorial |
Introduction to Financial Systems Learning outcomes: L01 |
|
Week 3 |
Lecture |
Topic 3 - ADIs and Shadow Banking Topic 2 - Promoting Financial System Stability Topic 3 - ADI's and Shadow Banking Institutions Guest Lecturer - Richard Howes Learning outcomes: L01, L02, L03, L04 |
Tutorial |
Promoting Financial System Stability + ADIs Learning outcomes: L01, L02, L03, L04 |
|
Week 4 |
Lecture |
Topic 4 - ADI Capital Structure Topic 4 - ADI Capital Structure (CB) Industry Expert - Chris Bell Learning outcomes: L01, L02, L03, L04 |
Tutorial |
ADIs and Shadow Banking Authorised Deposit-taking Institutions & Shadow Banking Learning outcomes: L01, L02, L03, L04 |
|
Week 5 |
Lecture |
Topic 5 - Funds Management Topic 5 - Funds Management (MT/VM) Learning outcomes: L02, L04 |
Tutorial |
ADIs Capital Structure Learning outcomes: L01, L02, L03, L04 |
|
Week 6 |
Lecture |
Topic 6 - Raising Equity Topic 6 - Raising Equity Industry Expert - Alex Dignam Learning outcomes: L01, L02, L03, L04 |
Tutorial |
Funds Management Learning outcomes: L01, L02, L03, L04 |
|
Week 7 |
Lecture |
Self-directed Study Self-directed study on topics 7 and 8 Learning outcomes: L01, L02, L03, L04 |
Tutorial |
Raising Equity Learning outcomes: L01, L02, L03, L04 |
|
Week 8 |
Lecture |
Topic 7 - Raising Debt Topic 7 - Raising Debt Industry Expert - Vinod Muthanna Learning outcomes: L01, L02, L03, L04 |
Week 9 |
Lecture |
Topic 8 - Credit Risk and the Risk Rating Process Topic 8 - Credit Risk and the Risk Rating Process Industry Expert - Vinod Muthanna Learning outcomes: L01, L02, L03, L04 |
Tutorial |
Raising Debt Learning outcomes: L01, L02, L03, L04 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester break No classes during In-Semester break. |
Week 10 |
Lecture |
Self-directed Study Self-directed study of Topics 9 and 10 Learning outcomes: L02 |
Tutorial |
Credit Risk and the Ratings Process Learning outcomes: L01, L02, L03, L04 |
|
Week 11 |
Lecture |
Self-directed Study Self-directed study of Topics 9 and 10 King's Birthday Public Holiday - Monday 7 Oct 2024 - Check Blackboard for announcements about affected classes. Learning outcomes: L01, L02, L03, L04 |
Tutorial |
Interest Rate Risk Management Learning outcomes: L02 |
|
Week 12 |
Lecture |
Self-directed Study Self-directed study of Topics 9 and 10 Learning outcomes: L01, L02, L03, L04 |
Tutorial |
Hedging with financial derivatives Learning outcomes: L02 |
|
Week 13 |
Lecture |
Topics 9 and 10 Interest Rate Risk Management & Hedging with financial derivatives Topic 9 - Interest Rate Risk Management Topic 10 - Hedging with financial derivatives Industry Expert - Richard Howes Learning outcomes: L01, L02, L03, L04 |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.