Commercial Banking and Finance

Unit code: BEO2001 | Study level: Undergraduate
Credit points
12
(Generally, 1 credit = 10 hours of classes and independent study.)
Location
City Campus
Prerequisites
BAO1000 - Financial Literacy and Decision Making
(Or equivalent to be determined by unit coordinator)
Overview
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Overview

Become well-versed in the many challenges faced in the global banking sector by choosing the Commercial Banking and Finance unit. You will explore how modern business challenges often follow economic, political, social and technological changes.

To further your knowledge, you will examine credit and lending by banking institutions. We address the major risks and issues that Australian banks face within the global financial context and appraise strategies to manage such risks.

Topics covered in the unit include:

  • an introduction to the Australian banking environment
  • bank performance
  • credit and lending practices
  • management of bank risks including interest rate, market, credit, liquidity
  • current innovations such as Fintech
  • effects of regulation
  • banking systems.

You will apply relevant learned theories to real-life scenarios through practical, hands-on activities, including:

  • research reports
  • individual presentations and group-based workshops
  • tests with the use of spreadsheets.

Learning Outcomes

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

  1. Analyse the major lending types and various risks faced by banks to advocate a portfolio of strategies including non-market and derivative contracts to manage risks;
  2. Judge the impact of risk on bank balance sheets and the role of regulation;
  3. Critique and appraise qualitative and quantitative data to assess performance of Australian banking institutions within the global context with a particular focus on present issues such as Fintech;
  4. Collaborate in teams while exhibiting individual responsibility and accountability to produce well written analysis that critically reflects upon issues relating to the banking sector; and,
  5. Report solutions clearly and coherently both in oral and written forms to a banking and non-banking audience.

Assessment

For Melbourne campuses

Assessment type: Test
|
Grade: 10%
Online quiz on banking industry and credit and lending
Assessment type: Test
|
Grade: 20%
In-class test 1 on interest rate risk
Assessment type: Assignment
|
Grade: 35%
Bank risk and current issues in banking (Group)
Assessment type: Test
|
Grade: 35%
Final in-class test 2

Other locations

For students studying at Liaoning University
Assessment type: Test
|
Grade: 10%
Online quiz on banking industry and credit and lending
Assessment type: Test
|
Grade: 20%
Mid-term test on interest rate risk
Assessment type: Assignment
|
Grade: 30%
Bank risk and current issues in banking (Group)
Assessment type: Examination
|
Grade: 40%
Final examination

Required reading

Students will have access to required readings via VU Collaborate and are not required to purchase the listed textbook.

Financial Institutions Management: A Risk Management Approach
Lange, H, Saunders, A and Cornett, MM (2021)| McGraw Hill, Australia

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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