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Course profile

Financial Institutions Management (FINM3414)

Study period
Sem 2 2024
Location
St Lucia
Attendance mode
In Person

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

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
  • In-person
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.

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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:

Learn more about UQ policies on my.UQ and the Policy and Procedure Library.