CORPFIN 2501 - Financial Institutions Management

North Terrace Campus - Semester 1 - 2020

This course provides an introduction to the management of financial institutions and intermediaries. The course focuses on the importance of ensuring good organizational functioning within institutions to manage the varied types of risk that they may be exposed to. Students are first introduced to the construct of the firm as a legal entity, and how financial institutions have specific requirements that relate to this. The course then examines the principles of the theory and practice of defining and measuring various types of risk these institutions can be exposed to, and effective policies for successful risk management . Students are also introduced to international standards of banking practice and how they impact the functioning of the institutions.

  • General Course Information
    Course Details
    Course Code CORPFIN 2501
    Course Financial Institutions Management
    Coordinating Unit Business School
    Term Semester 1
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Assumed Knowledge ECON 1008, ECON 1000 & ECON 1009
    Course Description This course provides an introduction to the management of financial institutions and intermediaries. The course focuses on the importance of ensuring good organizational functioning within institutions to manage the varied types of risk that they may be exposed to. Students are first introduced to the construct of the firm as a legal entity, and how financial institutions have specific requirements that relate to this. The course then examines the principles of the theory and practice of defining and measuring various types of risk these institutions can be exposed to, and effective policies for successful risk management . Students are also introduced to international standards of banking practice and how they impact the functioning of the institutions.
    Course Staff

    Course Coordinator: Dr Tariq Haque

    Dr Ratna Derina
    Location: Room 12.37, Level 12 Nexus 10 Building
    Telephone: 8313 7137
    Email: ratna.derina@adelaide.edu.au

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course, students will be able to:

    1. Explain the importance of financial institutions in the global economy
    2. Evaluate the performance of different types of financial institution
    3. Identify the main types of risk financial institutions are exposed to
    4. Apply different methods to measure those risks to suit different contexts
    5. Propose methods to manage the risks based on international standards of banking practice
    6. Communicate and work effectively in teams and as individuals

    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1,2,3,4,5,6
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    1,2,3,4,5,6
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    1,2,3,4,5,6
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    1,2,3,4,5,6
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    1,2,3,4,5,6
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    1,2,3,4,5,6
  • Learning Resources
    Required Resources
    Lange, H., A. Saunders, M.M. Cornett (LSC) , Financial Institutions Management , Fourth Edition, McGraw Hill/Irwin ( 2015)
    Recommended Resources
    Additional Readings :

    Topic 1 :Financial Services Industry
    1. Lewllyn D T, “Banking in the 21st century : The transformation of an industry “ in Readings in Financial Institution management : Modern Technique for a global industry edited by Tom Valentine and Guy Ford, Allen &Unwin (1999)
    2. Australian Prudential Regulatory Authority, “Overview of the Australian Deposit-taking Sector”, APRA Insight (1), 2006.

    Topic 2 : Performance Analysis and Measuring Risk Exposures
    Saunders, J. M.M. Cornett appendix 7A in “Financial Institutions Management, 6th edition McGraw Hill/Irwin (2008)

    Topic 10: Managing Risk : Liability and liquidity Management
    Lange, H., A. Saunders,J.A. Anderson, D. Thomson, M.M. Cornett (LSATC) , chapter 16 (pages 413-417) in “Financial Institutions Management” , Second Edition, McGraw Hill/Irwin ( 2007)
    Online Learning
    Lecture material such as presentation, articles, tutorial questions and lecture recording will be available on MyUni. Tutorial answers will also be made available in the week following the tutorial.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Lectures are supported by problem-solving tutorials developing material covered in lectures.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that students are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes. Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.
    Learning Activities Summary

    Week

    No

    Topic

    Reading

     

    1

    1

    Introduction

     

     

     

    Overview of Financial Institutions

    LSC : Ch 1

     

     

     

    Depository Institutions

    LSATC Ch 2, Lewllyn

     

     

     

    Non Depository Institutions

    LSTAC Ch3

     

    2

    2

    Measuring Financial Performance

     

     

     

    Financial Statement and Analysis

     Saunders Appendix 7A, LSC app 2A

     

     

     

    Concepts of Risk Management

    LSC, CH4

     

     

     

    Measuring Risk Exposure

     

     

    3

    3

    Interest rate risk (Maturity Model)

    LSC app 5a

    4

     3

    Interest rate risk (Duration & Repricing Models)

    LSC : Ch 6 & 5

    4 &5

    4

    Credit Risk

    LSC : Ch 10 &11

    6

     5

    Off-balance sheet activities & assignment

    LSC : Ch 16

     

    6

    Mid Semester Test

    Topics 1 to 3

    7

    6

    Foreign Exchange Risk

    LSC : Ch 13

    7

    Market Risk

     LSC : Ch9

    9

    8

    Liquidity Risk

    LSC ; Ch14

     

     

    Managing Risk

     

     

    10 

    9

    Liability and Liquidity Management

    LSC: Ch15, LSTAC 2nd ed ch 16, pg 413-417

    11 

    10

    Capital Adequacy

    LSC: Ch18

    12

    11

    Securitisation

    LSC: Ch8

    13

    12

    Review

    All

    Small Group Discovery Experience
    There is a group assignment to be completed by students in a group of up to 4 people.

    Each week (from Weeks 3 to 9 inclusive), the lecturer will set one or two problems based on the material covered in that week's lecture.  The problems will require students to think deeply about the lecture material and may include a requirement to create spreadsheets or download relevant data from the internet. 

    It is recommended for students to have consultation meetings with academic staff (lecturer or tutors) during the completion of the assignment.

    The due date for the assignment will be confirmed early in semester.


  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Due to the current COVID-19 situation modified arrangements have been made to assessments to facilitate remote learning and teaching. Assessment details provided here reflect recent updates.

    The assessment components are as follows:
    Assessment Task Task Type Due Date Weighting Learning Outcome
    Tutorial Individual Throughout 10% 1-6
    Mid Semester Test Individual Week 7 10% 1-4
    The problem set Group/Individual Weeks 3-9 30% 1-6
    Final Exam Individual Exam Period (see Access Adelaide) 50% 1-6
    Total 100%

    Specific due dates will be published on MyUni.

    The tutorial mark is still worth 10% of the overall assessment.
    Students are still required to submit tutorial problems from Tutorials 2-11 (Weeks 3-12) that the lecturer has indicated need to be submitted. Students are required to submit the solutions to these problems on the last day of Week 12 (i.e. by 4pm on Friday the 5th of June).

    The lecturer will still assign problems based on the lectures given in. These problems may require students to set up spreadsheets or to analyze articles in the media. These problem sets can still be attempted in groups of up to four students (where these students are not all required to come from the same tutorial). If the problem set is attempted in a group, then students are strongly encouraged to meet using online platforms such as Zoom. If students meet in person, then they must follow social distancing rules (no more than 1 person for every 4 square metres in an indoor space and at least 1.5m space between 2 people). Students can attempt the problem set by themselves, if they wish.




    Assessment Detail
    The assessment consists of tutorials, mid semester test, SGDE group assignment and final examination.

    o Tutorial classes will be held commencing the week beginning Monday, March 9th (week 2)
    The tutorial mark is based on attendance and submission of weekly tutorial questions
    -Submission of Work : • Students need to submit weekly homework in tutorial classes.

    Mid Semester Test 
    will be held in Week 6 (with the date to be confirmed). The test will cover topics 1 to 3.
    Students who do not sit the mid semester test and do not provide an adequate reason with evidence (e.g. illness or unavoidable work commitment) will receive a mark of zero for the test which will not be redeemable (i.e. the test will still count for 10 percent of the final mark).

    Small Group Discovery :
    -
    The group assignment is to be done in a group of up to 4 people.  Group members can be from different tutorial classes. All team members are expected to contribute approximately equally to the group assignment.  The assignment due date will be confirmed early in semester.

    Final exam is a closed book exam, covers all topics. No minimum mark for the final exam is required to pass the course.


    Submission
    Group assignments (both Word and Excel documents) should be submitted electronically, by the group leader.  The due date will be confirmed early in semester. Further details on how to submit your assignment electronically, will be provided early in semester.

    Presentation of Assignments


    •• Students must retain a copy of all assignments submitted.
    • When submitting your assignment, please attach a ‘ Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. Lecturers can refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.

    Assignment Guidelines including Referencing Details
    A copy of the Postgraduate Programs: Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. A copy of the guide can also be downloaded from http://www.business.adelaide.edu.au/current/mba/download/2009MBACommSkillsGuide.pdf This publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations etc.

    In preparing any written piece of assessment for your undergraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.)

    The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide. Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.

    Late Assignment Submission
    Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits.
    A late assignment (without prior arrangement) will be penalised by a 1 mark reduction for each day that it is late. 

    Return of Assignments
    Lecturers aim to mark and return assignments to students within 14 work days of the due date with written feedback. Students are responsible for collecting their marked assignments from the Student Hub. 
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.