| Semester 1, 2021 On-campus Springfield | |
| Short Description: | Managing Financial Institution |
| Units : | 1 |
| Faculty or Section : | Faculty of Business, Education, Law and Arts |
| School or Department : | School of Business |
| Student contribution band : | Band 4 |
| ASCED code : | 081101 - Banking and Finance |
| Grading basis : | Graded |
Staffing
Examiner:
Requisites
Pre-requisite: FIN1103
Other requisites
Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at .
Rationale
Financial management of core bank activities is a highly complex task requiring a broad range of financial skills. Banks must obtain funding from various sources in order to extend loans. They must generate sufficient return to cover their funding costs while maintaining adequate levels of liquidity. They must balance the returns they make against a range of financial risks including capital risk, interest rate risk, liquidity risk, foreign exchange risk, operational risk and credit risk. Banks undertake a range of on-balance-sheet and off-balance sheet activities and operate in local, national and international markets. In addition to interest costs and revenues, banks incur a range of non-interest costs and generate various non-interest revenues including fees and charges, commissions and capital gains. This course aims to provide students a broad knowledge of these various activities and to equip students with skills relevant to the management of such activities.
Synopsis
This course provides a broad appraisal of authorized deposit taking institutions (ADIs), and the associated decision making processes of the financial services sector in Australia. A range of topics is addressed including: the Australian financial environment; understanding financial statements; evaluating returns, risks and performance; the yield curve and gap management; the management of liabilities, liquidity, the securities portfolio and capital; and hedging and pricing with various interest rate derivatives. Formerly FIN2109.
Objectives
On successful completion of this course, students should be able to:
- synthesise financial institution treasury management concepts, regulations, principles and processes required to manage capital, liabilities, securities, interest rates, hedging activities and overall bank performance;
- think critically, constructively and logically about the rationale behind regulatory developments in the banking sector and their likely impacts;
- communicate clearly and concisely through presenting banking knowledge and industry relevant concepts and forecasts;
- apply banking-related knowledge and technical skills to solve problems faced by financial services professionals in the management of financial institutions;
- demonstrate the literacy and numeracy skills required of financial services professionals by interpreting industry reports and undertaking the range of calculations that face managers of financial institutions (including management of the repricing gap and duration gap);
- work collaboratively to address banking industry developments and implications.
Topics
| Description | Weighting(%) | |
|---|---|---|
| 1. | Introduction to pricing fixed income securities, elasticity and duration | 4.00 |
| 2. | Understanding financial statements of ADIs | 8.00 |
| 3. | Evaluating returns, risks and overall performance | 9.00 |
| 4. | Prudential supervision, Basel Accords and capital management | 9.00 |
| 5. | Managing liabilities | 9.00 |
| 6. | Managing liquidity | 9.00 |
| 7. | Managing the securities portfolio | 9.00 |
| 8. | Managing interest rate risk I | 8.00 |
| 9. | Managing interest rate risk II | 8.00 |
| 10. | Financial futures and forwards | 9.00 |
| 11. | Financial options | 9.00 |
| 12. | Interest rate swaps | 9.00 |
Text and materials required to be purchased or accessed
ALL textbooks and materials available to be purchased can be sourced from (unless otherwise stated). (https://omnia.usq.edu.au/textbooks/?year=2021&sem=01&subject1=FIN3109)
Please for alternative purchase options from USQ Bookshop. (https://omnia.usq.edu.au/info/contact/)
(etext available from: cengagebrain.com.au.)
Reference materials
Student workload expectations
| Activity | Hours |
|---|---|
| Directed Study | 36.00 |
| Independent Study | 129.00 |
Assessment details
| Description | Marks out of | Wtg (%) | Due Date | Notes |
|---|---|---|---|---|
| QUIZ 1 | 10 | 10 | 21 Mar 2021 | (see note 1) |
| QUIZ 2 | 10 | 10 | 11 Apr 2021 | |
| ASSIGNMENT | 30 | 30 | 23 Apr 2021 | (see note 2) |
| QUIZ 3 | 10 | 10 | 16 May 2021 | |
| FINAL QUIZ | 40 | 40 | 06 Jun 2021 | (see note 3) |
Notes
- Online quizzes will be conducted during the Semester. Further details will be provided on the course Study Desk.
- The assignment includes a group-work presentation.
- This assessment functions as an open book final exam. All topics are covered. Total working time is 2 hours and 30 minutes. Further details will be provided on the course Study Desk.
Important assessment information
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Attendance requirements:
Online: There are no attendance requirements for this course. However, it is the students' responsibility to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration.
On-campus: It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration. -
Requirements for students to complete each assessment item satisfactorily:
To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks. (Depending upon the requirements in Statement 4 below, students may not have to satisfactorily complete each assessment item to receive a passing grade in this course.) -
Penalties for late submission of required work:
Students should refer to the Assessment Procedure (point 4.2.4) -
Requirements for student to be awarded a passing grade in the course:
To be assured of receiving a passing grade in a course a student must obtain at least 50% of the total weighted marks for the course. -
Method used to combine assessment results to attain final grade:
The final grades for students will be assigned on the basis of the aggregate of the weighted marks obtained for each of the summative assessment items in the course. -
Examination information:
There is no examination in this course. -
Examination period when Deferred/Supplementary examinations will be held:
There is no examination in this course, there will be no deferred or supplementary examinations. -
University Student Policies:
Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions which might contravene University policies and practices. These policies can be found at .
Assessment notes
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Referencing in assignments:
Harvard (AGPS) is the referencing system required in this course. Students should use Harvard (AGPS) style in their assignments to format details of the information sources they have cited in their work. The Harvard (AGPS) style to be used is defined by the USQ Library's referencing guide at .