This unit examines the major risks and issues faced by Australian financial institutions within the context of the global environment. Topics include an introduction to the Australian banking environment, bank performance, management of bank risks including credit, capital, liquidity and interest rate risk, loan pricing, liability management, investment management and capital adequacy.
The learning goals associated with this unit are to:
- examine the main risks and related prudential requirements faced by banks and to assess factors to consider in managing these risks
- appraise suitable qualitative and quantitative data or characteristics to assess bank performance
- understand asset and liability management of a financial institution
- contrast various security portfolio strategies available to the bank, and explain optimal strategies when interest rates change
- understand non-market related and derivative contracts used by financial institutions
- be able to sequence the Basel prudential framework as instigated within the Australian context, but emanating from the Basel Committee at the global level
- be able to clearly and effectively communicate solutions, applying the knowledge in above areas, in a distinctly logical manner in relation to activities dealing with the commercial banking and finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by AFF2401.
Within semester assessment: 30%
Dr Kym Brown (First semester)
Dr Abu Zafar Shahria (Second semester)
Only students in course code 0391 can undertake this unit in DE mode