Global Credit Analysis and Lending Management

    Unit code: BAO6003 | Study level: Postgraduate
    Credit points
    12
    (Generally, 1 credit = 10 hours of classes and independent study.)
    Location
    City Campus
    Prerequisites
    N/A
    Overview
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    Overview

    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.

    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

    For Melbourne campuses

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

    Required reading

    Credit analysis and lending management
    Sathye, M.M., & Bartle, J. (2017).| Mirabel Publishing.

    As part of a course

    This unit is studied as part of the following course(s):

    Master of Finance
    BMFA | Masters (coursework) degree | Duration: 2 years

    Refer to the course page for information on how to apply for the course. VU takes care to ensure the accuracy of this unit information, but reserves the right to change or withdraw courses offered at any time. Please check that unit information is current with the Student Contact Centre.

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