Credit and Lending Decisions

Unit code: BAO3404 | Study level: Undergraduate
12
(Generally, 1 credit = 10 hours of classes and independent study.)
City Campus
Online Real Time
BEO2000 - Financial Institutions and Monetary Theory
(Or equivalent to be determined by unit coordinator)
Overview
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Overview

This is one of the final year specialisation units in the Bachelor of Business (Banking and Finance) degree. This unit provides insights into lenders perspectives on proficient credit risk assessments of consumers and businesses. Students will critically review aspects of risk for financial services firms, particularly commercial banks, credit unions and investment banks such as: credit origination, analysis and management, including the lending functions. Topics under investigation include: the principles of lending, credit risk management and modelling, analytical tools to judge credit worthiness of prospective borrowers, analysis of business and personal loans, small business finance, corporate lending, project finance, leasing, securitization, regulatory aspects of credit risk management, problem loan management, evolution of risk management approaches and credit derivatives.

Learning Outcomes

On successful completion of this unit, students will be able to:

  1. Evaluate the financial position of a potential borrower in relation to several different types of loans;
  2. Prepare a comprehensive lending submission;
  3. Critically review the lending activities of financial institutions and assess the risks associated with these activities by employing the basic principles governing bank lending;
  4. Restructure credit proposals to best suit the needs of both the borrower and lender; and
  5. Discuss and analyse the broader issues involved in a financial institution's management of its credit risk.

Assessment

For Melbourne campuses

Assessment type: Presentation
|
Grade: 10%
Group presentation
Assessment type: Assignment
|
Grade: 40%
Group lending submission and presentation
Assessment type: Test
|
Grade: 40%
Short answer questions, case studies, calculation questions
Assessment type: Test
|
Grade: 10%
Multiple choice questions, short answer questions, calculations

Other locations

For students studying at Liaoning University
Assessment type: Test
|
Grade: 10%
Multiple choice questions, short answer questions, calculations
Assessment type: Presentation
|
Grade: 10%
Group presentation
Assessment type: Assignment
|
Grade: 40%
Group lending submission and presentation
Assessment type: Examination
|
Grade: 40%
Short answer questions, case studies, calculation questions

Required reading

Credit analysis & lending management
Sathye, M., Bartle, J., Vincent, M., & Boffey, R. (2017).| Tilde University Press.

As part of a course

This unit is not compulsory for any specific course. Depending on the course you study, this unit may be taken as an elective.

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