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.

Unit details

Location:
Study level:
Undergraduate
Credit points:
12
Unit code:
BAO3404

Prerequisites

BEO2000 - Financial Institutions and Monetary Theory

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

Assessment type Description Grade
Test Multiple choice questions, short answer questions, calculations 10%
Presentation Group presentation 10%
Assignment Group lending submission 30%
Examination Short answer questions, case studies, calculation questions 50%

Required reading

Credit Analysis & Lending Management,
Sathye M, Bartle J, Vincent M, & Boffey R; 2013;
Tilde University Press, Melbourne

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