Banking

Table of postgraduate units of study: Commerce

The information below details the unit of study descriptions for the units listed in the Table of postgraduate units of study: Commerce.

Timetabling information for the current year is available on the Business School website. Students should note that units of study are run subject to demand.

Banking

Achievement of a specialisation in Banking requires 30 credit points from this table comprising:
(i) 6 credit points in foundational units of study
(ii) 18 credit points in compulsory units of study
(iii) 6 credit points in elective units of study.

Units of study for the specialisation

Foundational unit of study

FINC5001 Capital Markets and Corporate Finance

Credit points: 6 Session: Intensive January,Intensive July,Semester 1,Semester 2 Classes: 1x 3hr seminar per week Assessment: mid semester-test (20%), major assignment (25%), and final examination (55%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening, Block
This unit provides an introduction to basic concepts in corporate finance and capital markets. It is designed to equip students to undertake further studies in finance. After reviewing some very basic ideas in finance and financial mathematics, the unit provides an introduction to the valuation of equity and debt securities and companies. The unit then examines issues related to pricing in capital markets and ends with a discussion of theory and practice related to capital structure and dividend policy.

Compulsory units of study

BANK6002 Bank Management

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 3hr seminar per week Corequisites: FINC5001 Assessment: group assignment part 1 (15%), group assignment part 2 (10%), mid-semester exam (25%), final exam (50%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
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.
BANK6003 Global Supervision of Bank Risks

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 3hr seminar per week Corequisites: FINC5001 Assessment: mid-semester exam (30%), group project and presentation (25%), and final exam (45%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is aimed at students who wish to obtain a greater understanding of the central issues and principles underpinning recent developments in the global regulation and supervision of banking/financial institutions.
BANK6005 International Banking

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 2hr lecture and 1x 1hr workshop per week Corequisites: FINC5001 Assessment: mid-semester exam (37.5%), final exam (37.5%), research project (15%), project presentation (10%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
The major focus of this unit is providing students with an understanding of international banking and finance in the contemporary international financial environment. Due to the dynamic nature of the international banking environment, it is necessary to develop skills to effectively identify and understand the effects of current developments. Firstly, the international banking functions are presented; followed by international trade financing, participation in the interbank foreign exchange and Euro currency markets, international investment banking services, and sovereign lending. Other important topics include international money laundering, international banking and debt crises, and offshore banking markets.

Elective units of study

ACCT6003 Fundamental Analysis for Equity Investment

Credit points: 6 Session: Semester 1,Semester 2 Classes: 13x 2hr lectures, 13x 1hr workshops. Prerequisites: ACCT5001 and FINC5001 Assumed knowledge: QBUS5001 or QBUS5002 Assessment: mid-semester test (20%); weekly workshops (15%); equity investment (20%); final exam (45%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
Note: ACCT6003 assumes knowledge of basic statistics and econometrics that are covered in QBUS5001/5002. ACCT6003 requires the analysis of data, ratios, normal distribution, expectations, variance, data graphs. ACCT6003 also assumes solid knowledge of time value of money concepts.
This unit develops a framework of fundamental analysis for equity investment in publicly traded companies. The first part of the unit deals with the analysis of financial statement information, complemented with other sources of information such as business strategy, industry prospects and key macroeconomic effects. Emphasis is on the analysis of earnings quality and accounting-based valuation methods. The second part of the unit applies fundamental analysis in the appraisal of equity investment, and the effect of credit evaluation and risk analysis, as well as the valuation for takeovers. The unit also covers the impact on equity valuation from inherent behavioural patterns in informing investment decisions.
CLAW6031 International Financial Crime

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Assessment: test (20%), group assignment (30%), final exam (50%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
International financial crime occupies a leading place on the international governance agenda. It has a devastating impact on national economies, international security and human development. This unit examines key international financial crimes such as investment fraud, corruption, tax evasion, money laundering and terrorist financing. Students gain an understanding of how these crimes are committed, detected and prosecuted. They analyse the changing regulatory environment and the new risks facing businesses and the professions. The role of bank secrecy and tax havens in facilitating financial crime is also studied. There is a special focus on the prevention of financial crime, and the regime for tracing, freezing and recovery of illicit assets. The unit draws on case studies from Australia, United States, Europe and Asia so as to gain a better appreciation of the national and international responses to international financial crime.
FINC6001 Intermediate Corporate Finance

Credit points: 6 Session: Intensive January,Intensive July,Semester 1,Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester test (30%), major assignment (30%), final exam (40%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening, Block
This unit extends some of the fundamental concepts introduced in FINC5001 Capital Markets and Corporate Finance, and develops a rigorous framework for the analysis and understanding of key aspects of corporate financial decision making. Fundamental concepts in corporate finance are extended to more complex settings. The unit examines more advanced approaches to asset pricing and capital budgeting. New topics are covered in relation to derivative securities and real options applications in capital budgeting. The issues of the cost of capital, corporate capital structure, and corporate dividend policy, are extended to cover the interaction of corporate and personal taxation, agency problems, and information signalling.
FINC6009 Portfolio Theory and its Applications

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 or FINC5002 or FINC6000 Assessment: mid semester exam (20%), individual assignment (15%), group assignment (15%), final exam (50%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers several aspects of modern/post modern portfolio theory.An introduction to mathematical optimisation techniques in the presence of uncertainty is covered and results from modern portfolio theory to the Capital Asset Pricing Model derived. The unit also examines other popular models such as the Arbitrage Pricing Theory and Black-Litterman Model and concludes with some topical examples from industry. There is a degree of mathematical sophistication associated with this unit and consequently students should be comfortable with a mathematical approach. However, the required mathematical tools are covered in the unit.
FINC6010 Derivative Securities

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), assignment (25%), final exam (50%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
This unit provides an introduction to the rapidly-growing area of options, futures and swaps. These securities are derived from fundamental securities such as equities and bonds. The unit examines the nature of each of type of derivative security before a thorough treatment of the pricing and use of these securities for investment management and risk management purposes.
FINC6013 International Business Finance

Credit points: 6 Session: Semester 1 Classes: 1 x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester test (25%), assignment (25%), final exam (50%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
In our highly globalised and integrated world economy, understanding international dimensions of financial management is essential for businesses. This unit provides a greater understanding of the fundamental concepts and the tools necessary for effective financial decision making by business enterprises, within a global setting.
FINC6014 Fixed Income Securities

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), group assignment (25%), and final exam (50%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers the concepts required for investment in fixed income securities, managing bond portfolios and understanding debt markets. Topics covered include duration, convexity, interest rate risk, bond volatility and the term structure of interest rates. The more complex types of debt securities studied include mortgage backed securities, corporate bonds with embedded options such as convertible bonds and interest rate derivatives.
FINC6017 Mergers and Acquisitions

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Prohibitions: ACCT6011 Assessment: mid-semester exam (30%), assignment (20%), final exam (50%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
Mergers and acquisitions have become perhaps the most important activity of investment banks today. They provide a fundamental way for businesses to secure growth. To analyse mergers and acquisitions, most tools from modern financial economics are needed. The unit commences with a review of how existing businesses are valued, continues with an analysis of capital structure decisions, considers management incentives and examines issues in corporate control. It then examines the motives for mergers and acquisitions. Some acquisitions are motivated by value improvements created by correcting incentive problems, some acquisitions however are motivated by bad incentives that decrease value.
FINC6021 Corporate Valuation

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), assignment (25%), final exam (50%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
This unit applies all aspects of finance theory to the general problem of valuing companies and other financial assets. This requires a synthesis of the fundamental concepts of present value, cost of capital, security valuation, asset pricing models, optimal capital structures, derivative pricing and some related accounting concepts. The unit aims to reach a level of practical application that allows students to understand both the theoretical frameworks and institutional conventions of real world corporate valuations. Basic valuation concepts from accounting are reconciled with the finance theory on which firm value ultimately stands. Students are asked to make extensive use of Excel or similar software in valuation exercises.
FINC6024 Real Estate Finance and Investment

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: cases (40%); individual assignments (30%); major group assignment (25%); industry presentation (5%) Campus: Camperdown/Darlington, Sydney Mode of delivery: Normal (lecture/lab/tutorial) day
Real Estate Finance will provide graduates with the knowledge and skills to value and manage real estate within the context of a mixed-asset portfolio. In particular, this unit will explore the micro-economic and macro-economic foundations of real estate, real estate valuation techniques, property derivatives and securities, real estate portfolio management, capital management and listed real estate firms. Graduates can seek employment in the property management industry, funds management industry and financial analysis roles.