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Unit of study_

BANK6002: Bank Management

Semester 1, 2020 [Normal day] - Camperdown/Darlington, Sydney

The unifying theme in this unit is the application of modern finance theory to financial decision making in the management of banks and non-bank financial institutions. The subject of bank and financial institution decision-making is approached from a risk perspective. The unit objectives are: (i) To provide students with an understanding of the modern model of financial institutions and the economic functions that they perform; (ii) Identify the main types of risk confronted by financial institutions; (iii) Apply relevant techniques to measure and manage those risks; (iv) To provide students with the ability to critically assess the effectiveness of the techniques used by banks to manage their risks(v) To provide students with an understanding of international bank management and financial services.

Unit details and rules

Unit code BANK6002
Academic unit Finance
Credit points 6
Prohibitions
? 
None
Prerequisites
? 
None
Corequisites
? 
FINC5001
Assumed knowledge
? 

None

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Guangqian Pan, guangqian.pan@sydney.edu.au
Type Description Weight Due Length
Final exam Take-home final exam
Take-home written exam
75% Formal exam period 3 hours
Outcomes assessed: LO1 LO8 LO7 LO6 LO5 LO4 LO3 LO2
Assignment group assignment Group assignment 1
Report
15% Week 10
Due date: 08 May 2020 at 12:00

Closing date: 08 May 2020
3 pages
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8
Assignment group assignment Group assignment 2
Report
10% Week 13
Due date: 29 May 2020 at 12:00

Closing date: 29 May 2020
2 pages
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8
group assignment = group assignment ?

Assessment summary

  • Assignment 1: In groups of 1-5, students will prepare a report that assesses and compares the interest rate risk and credit risk of the big four banks in Australia.
  • Assignment 2: In groups of 1-5, students will prepare a report that assesses the risks and profitability of a non-bank lender.
  • Final exam: The exam will cover the materials from weeks 1 to 13.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Distinction

75 - 84

Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Credit

65 - 74

Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Pass

50 - 64

Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website  provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.  

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

WK Topic Learning activity Learning outcomes
Week 01 Introduction and overview of the financial system and the role of banks Lecture (3 hr)  
Week 02 Bank financial statements and banking risks Lecture and tutorial (3 hr)  
Week 03 Interest rate risk 1 Lecture and tutorial (3 hr)  
Week 04 Interest rate risk 2 Lecture and tutorial (3 hr)  
Week 05 Credit risk 1: individual loan risk measurement Lecture and tutorial (3 hr)  
Week 06 Credit risk 2: loan portfolios and concentration risk measurement Lecture and tutorial (3 hr)  
Week 07 Liquidity risk 1: measurement Lecture and tutorial (3 hr)  
Week 08 Liquidity risk 2: management Lecture and tutorial (3 hr)  
Week 09 Market risk: measurement and the application of value at risk Lecture and tutorial (3 hr)  
Week 10 The future of banking Lecture and tutorial (3 hr)  
Week 11 Bank regulation 1: Micro prudential Policy Lecture and tutorial (3 hr)  
Week 12 Bank regulation 2: Macro prudential Policy Lecture and tutorial (3 hr)  
Week 13 Loan sales and securitisation Lecture and tutorial (3 hr)  

Attendance and class requirements

Lecture recordings: All lectures and seminars are recorded and will be available on Canvas for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

Financial Institutions Management: A Risk Management Approach 9th, by Anthony Saunders, Marcia MillonCornett, McGraw Hill, 2018.

All readings for this unit can be accessed through the Library eReserve, available on Canvas.

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. identify and measure the key inherent risks faced by banks
  • LO2. develop and apply strategies using tools and techniques to effectively manage these risks
  • LO3. identify the strengths and weaknesses that exist in the approaches currently available to measure the financial risks faced by financial institutions
  • LO4. assess the appropriateness of the various approaches in formulating risk management strategies
  • LO5. present findings in the form of a report, including recommendations for action which are supported by quantitative and qualitative analysis
  • LO6. participate as a member of a team to undertake analysis of a business situation and to present the team's findings and recommendations
  • LO7. describe the failings of financial institutions during the 2008 GFC and the identify the extent to which these failings can be traced back to poor ethical and governance frameworks
  • LO8. analyse everyday financial/banking news and reflect on the new developments in the banking industry.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

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