The unit aims to provide an analysis of the various lending activities of Australian financial institutions and the legal principles related to these activities. Emphasis is placed on the assessment of credit proposals and the management of credit risk. Complex ideas and concepts related to credit policy, retail lending, commercial lending, corporate lending and corporate services and valuation of assets will be explored. In addition, methodologies related to structuring a loan, traditional techniques for credit analysis, distressed firm prediction and reviewing of the newer models of assessing credit risk e.g. term structure models, mortality models and option model will form part of this unit.

Unit details

Study level:
Postgraduate
Credit points:
12
Unit code:
BAO5746

Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Argue reasons for the lending activities of financial institutions and justify the risks associated with this activity;  
  2. Critically review various leading facilities required by customers in a range of Australian and international financial institutions;  
  3. Work collaboratively and interrogate the issues related to lending to various forms of legal form, including, individuals, corporations, partnerships, trusts and associations, and report recommendations; and  
  4. Critically analyse and justify lending proposals of corporate, business, and consumer clients.  

Assessment

Assessment type Description Grade
Assignment Group assignment - presentation 10%
Assignment Group assignment - written report. 40%
Examination Final examination 50%

Required reading

Credit Analysis & Lending Management 3rd ed
Sathye, M, Bartle, J, and Boffey, R 2013
Tilde University Press

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