Units

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Sample subject outline - Semester 2 2012

Note: Subject outlines often change before the semester begins. Below is a sample outline.

Rationale

This unit is one of three units that provide a foundation in understanding key principles in bank operation. The three key units are Financial Institutions Control, Financial Institutions Lending and Financial Institutions Law. Financial Institutions Control provides an in depth analysis of authorised deposit taking institutions and the associated decision making processes of the financial services sector in Australia. It also examines the role of the international financial market place on bank practice.

The unit develops further the framework learned in EFB210 Finance 1 to enable the analysis of other and more advanced aspects of the theory and practice of financial institutions management. With the growing sophistication of financial market product offerings and the internationalisation of global financial markets and bank sources of funds, this unit provides an excellent base for students wishing to pursue a career specialising in banking and finance.
It is also a unit that is highly relevant for students studying business more generally since it gives a practical insight into the operation and challenges facing Australian and offshore financial institutions within world financial markets.

Aims

The aim of this unit is for students to develop an intermediate level of financial management skills through banking and business finance theory and its application.

Objectives

Course Learning Goals (Undergraduate)
The Faculty of Business has established the Assurance of Learning (AOL) Goals to meet contemporary industry needs and standards. Achieving these learning outcomes will assist you to meet the desired graduate outcomes set at QUT - aligned with other internationally renowned business schools. Students will develop the following capabilities relevant to a contemporary global and sustainable business environment:

Have knowledge and skills pertinent to a particular discipline (KS)

1.1 Integrate and apply disciplinary theory and skills to practical situations
1.2 Incorporate the use of technology appropriate to the discipline and context

Be critical thinkers and effective problem solvers (CTA)

2.1 Identify, research and critically analyse information relevant to a business problem or issue, be able to synthesise that information in order to evaluate potential solutions, make recommendations or otherwise effectively address the problem or issue

Be professional communicators in an intercultural context (PC)

3.1 Communicate effectively through written tasks appropriate to varied contexts and audiences
3.2 Communicate effectively through professional oral presentations appropriate to varied contexts and audiences

Be able to work effectively in a Team Environment (TW)

4.1 Demonstrate effective team skills in order to contribute appropriately to the production of a group output

Have a Social and Ethical Understanding (SEU)

5.1 Apply ethical reasoning, standards or codes of practice relevant to the discipline and make decisions that are informed by social and cultural understanding

Unit Objectives
Upon completion of this unit, you should be able to:

1. Identify and explain the functions by different components of financial markets and the market participants
2. Identify the linkages between different components of financial markets in a global context
3. Critically analyse the key developments in the global socio-economic and political environment and their impact on financial markets
4. Evaluate the impact of regulatory changes on financial markets

The specific course learning goals and unit objectives that apply to this unit are shown in the assessment section of this unit outline.

Content

The Australian financial environment and financial statements of ADIs - Introduction to the financial aspects of banks in particular

Evaluating returns, risks, and overall performance - How banks determine performance

The yield curve and gap management - Impact of yield curve and gap management on bank performance

Managing liabilities - How the bank manages the liability side of its balance sheet

Managing liquidity - The key features of liquidity performance in bank management

Managing the securities portfolio - The development of investment policies and goals

Managing capital - Capital adequacy and the role of the shareholder

Managing the loan portfolio - The lending process and pricing of loans

Financial futures and forwards - How financial instruments are used in bank management

Options and Swaps - How financial instruments are used in bank management

Global financial services - The importance and context of international factors on liquidity

Revision

Approaches to Teaching and Learning

This unit has an equivalent formal class contact time consisting of lectures and tutorials of approximately three hours (lecture two hours, tutorial one hour) for each week of semester. Furthermore, a student should expect to devote, on average, nine further hours per week on self-study and assignments. The nine non-formal hours should be seen as a guide only, and not to be regarded as a restriction on the hours devoted to the unit.

Resources such as copies of overheads for each lecture topic, reading and tutorial guides, assignments and some solutions are provided on the unit's Blackboard site at < http://blackboard.qut.edu.au >. Students will need their student number and password.

Students are expected to read the relevant material (textbook and notes), complete the self-study questions provided and to review the lecture slides before attending the lecture. A weekly reading and tutorial guide can be found on the Blackboard site. The reading guide indicates the material students should concentrate on.

Assessment

The assessment in this unit aims to support your achievement of the learning objectives for both discipline knowledge and other graduate capabilities. Assessment has been designed in order to allow you to:

Receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment); and

Demonstrate your learning in order to achieve a final grade (summative assessment).

Students will receive feedback in various forms throughout the semester which may include:

Informal: worked examples, such as verbal feedback in class, personal consultation

Formal: in writing, such as checklists (e.g. criteria sheets), written commentary

Direct: to individual students, either in written form or in consultation

Indirect: to the whole class

Assessment name: Mid-Semester Exam
Description: The mid-semester exam will consist of a number of short-answer questions. The mid-semester exam will test a student's proficiency in lending theory and its application in problem scenarios. Exam feedback will be provided in a timely manner so that students can receive information on their progress in the unit at the approximate mid-way point of the semester.
Length/Duration: 2 hour in-class
Formative or Summative: Formative and Summative
Relates to objectives: Unit objectives: 1, 2, 3, 4 and AOL goals: KS (1.1), CTA (2.1), PC (3.1)
Weight: 50%
Internal or external: Internal
Group or individual: Individual
Due date: Week 7 in class

Assessment name: Final Exam (Take home)
Description: The final exam will consist of two longer essay style questions in problem format. To successfully complete the exam, a student must demonstrate their depth of understanding of lending theory and the application of problem solving techniques and critical analysis. The questions will be provided to all students at the lecture in week 10 and copied to the Blackboard site. The completed exam is to be submitted by close of business on Friday of week 13. This gives students time to consider the questions, research and analyse their answer, so referencing and a reference list will be required.
Length/Duration: minimum 1250 words (per question)
Formative or Summative: Summative
Relates to objectives: Unit objectives: 1, 2, 3, 4 and AOL goals: KS (1.1), CTA (2.1), PC (3.1), SEU (5.1)
Weight: 50%
Internal or external: Internal
Group or individual: Individual
Due date: Week 13

Academic Honesty

QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.

A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.

Resource materials

Prescribed Text
Gup B. E., Avram K., Beal D., Lambert R. and Kolari J. W. (2007) Commercial Banking, The Management of Risk. John Wiley & Sons Aust Ltd, Brisbane.

References
Beal et al., (2008) Corporate Finance (2nd edn.). John Wiley & Sons.
Koch and MacDonald (2006) Fundamentals of Investing (6th edn.). South-Western Cengage Learning.


Other Resources

Additional references and resources, including lecture overheads, additional notes, journal and other readings, weekly reading and tutorial guides, assignments and solutions can also be found at the unit's Blackboard site: < https://blackboard.qut.edu.au >

Students are encouraged to read the Australian Financial Review newspaper and to have as handy reference their preferred business finance text.

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Risk assessment statement

There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.

Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.

Last modified: 01-Jun-2012