The unit aims to provide an analysis of the various lending activities of global financial institutions and the legal principles related to these activities. In a globalised world, the provision of credit links financial institutions, which necessitates an all-encompassing regulatory system. 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, corporate services and mortgage broking 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

Location:
Study level:
Postgraduate
Credit points:
12
Unit code:
BAO6003

Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Interrogate the impact of multiple variables upon a personal and corporate credit score;  
  2. Design and justify corporate lending proposals using various methods of credit risk analysis and management;  
  3. Predict loan pricing accurately in order to mitigate risk according to the dynamic global regulatory environment;  
  4. Critically review various lending facilities required by customers in a range of Australian and international financial institutions; and,  
  5. Formulate rigorous financial analysis to assess performance of large companies.  

Assessment

Assessment type Description Grade
Report Debt reduction plan (group) 20%
Assignment Lending proposal assignment (group) 40%
Test In-class test (Short answer and/or case study questions) 40%

Required reading

Credit Analysis and Lending Management (4th ed.)
Sathye, M. M., & Bartle, J. (2017).
Prahran, VIC : Mirabel Publishing

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