BANK6002: Semester 1, 2020

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Units BANK6002 Semester 1 2020 [Normal day]

Unit outline_

BANK6002: Bank Management

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

Overview

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

Academic unit	Finance
Credit points	6
Prerequisites ?	None
Corequisites ?	FINC5001
Prohibitions ?	None
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:
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:
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:
= 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 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.

Learning support

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.

Weekly schedule

WK	Topic	Learning activity
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

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.

Outcomes
Graduate qualities

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
Learning outcomes

Responding to student feedback

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

No changes have been made since this unit was last offered

Additional information

Disclaimer

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

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

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