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Unit outline_

FINC6031: Financial Intermediary Management

Semester 2, 2023 [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 to provide students with an understanding of the modern model of financial institutions and the economic functions that they perform; identify the main types of risk confronted by financial institutions; apply relevant techniques to measure and manage those risks; to provide students with the ability to critically assess the effectiveness of the techniques used by banks to manage their risks; and to provide students with an understanding of international bank management and financial services.

Unit details and rules

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

None

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Danilo Lopomo Beteto, danilo.lopomobeteto@sydney.edu.au
Lecturer(s) Danilo Lopomo Beteto, danilo.lopomobeteto@sydney.edu.au
Type Description Weight Due Length
Supervised exam
? 
Final exam
Closed book written exam
50% Formal exam period 2 hours
Outcomes assessed: LO1 LO2 LO3 LO4
Supervised test
? 
In-semester test
Closed book written exam
30% Week 08
Due date: 19 Sep 2023 at 12:30
1 hour
Outcomes assessed: LO1 LO2 LO3 LO4
Assignment group assignment Group assignment
Written report
20% Week 12
Due date: 29 Oct 2023 at 23:59

Closing date: 12 Nov 2023
10 pages
Outcomes assessed: LO1 LO2 LO3
group assignment = group assignment ?

Assessment summary

Final exam: Closed book final exam is a written exam held during the final exam period and assesses the entire unit of study materials. It is worth 50% of total UOS marks.

Mid term exam: Closed book mid term exam is a written exam held in class in during the mid term exam period. It covers the unit materials up to the week before the exam. It is worth 30% of the total UOS marks.

Assignment: Group assignment requires understanding of the key concepts covered in the UOS and ability to conduct a related applied research. It is worth 20% of the total UOS marks

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.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

For every calendar day up to and including ten calendar days after the due date, a penalty of 5% of the maximum awardable marks will be applied to late work. For work submitted more than ten calendar days after the due date 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.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

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 Overview of the financial system and the role of Banks Lecture (3 hr) LO1 LO2 LO3
Week 02 Interest rate risk measurement I Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 03 Interest rate risk measurement II Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 04 Market risk: measurement and the application of Value at Risk Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 05 Credit risk: individual loan risk measurement Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 06 Credit risk: loan portfolios and concentration risk measurement Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 07 Fintech risk Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 08 Credit risk: management techniques Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 09 Sovereign risk: measurement and management Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 10 Liquidity risk: measurement and management Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 11 Deposit insurance and other liability guarantees Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 12 Capital adequacy Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 13 Final Exam Review Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4

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.

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

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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