CORPFIN 2501 - Financial Institutions Management

North Terrace Campus - Semester 1 - 2025

This course provides an introduction to the management of financial institutions and intermediaries. The course focuses on the importance of ensuring good risk management within institutions to manage the varied types of risk that they may be exposed to. Students are first introduced to the important roles of financial institutions. The course then examines the principles of the theory and practice of defining and measuring various types of risk these institutions can be exposed to, and effective policies and strategies for successful risk management. Students are also introduced to international standards of banking practice and how they impact the functioning of the institutions.

  • General Course Information
    Course Details
    Course Code CORPFIN 2501
    Course Financial Institutions Management
    Coordinating Unit Finance and Banking
    Term Semester 1
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites CORPFIN 1002 or (CORPFIN 1002UACA and CORPFIN 1002UACB)
    Assumed Knowledge ECON 1000, ECON 1008, ECON 1009, ECON 1012
    Assessment Exam/assignments/tests/tutorial work as prescribed at first lecture
    Course Staff

    Course Coordinator: Dr Erin Derina


     Course Coordinator : Dr Ratna Derina (Erin)
    Location: Room 12.37, Level 12 Nexus 10 Building
    Telephone: 8313 7137
    Email: ratna.derina@adelaide.edu.au

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    The full timetable of all activities for this course can be accessed from Course Planner.

    ◾Students in this course are expected to attend one 2-hour lecture and one 1-hour tutorial class each week.
    ◾Tutorials commence in WEEK 2 and ASSESSMENT in tutorials  BEGINS in WEEK 3.

  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course, students will be able to:

    1 Explain the importance of financial institutions in the global economy
    2 Evaluate the performance of different types of financial institution
    3 Identify the main types of risk financial institutions are exposed to
    4 Apply different methods to measure those risks to suit different contexts
    5 Propose methods to manage the risks based on international standards of banking practice
    6 Communicate and work effectively in teams and as individuals


    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)

    Attribute 1: Deep discipline knowledge and intellectual breadth

    Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.

    1,2,3,4,5,6

    Attribute 2: Creative and critical thinking, and problem solving

    Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.

    1,2,3,4,5,6

    Attribute 3: Teamwork and communication skills

    Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.

    1,2,3,4,5,6

    Attribute 4: Professionalism and leadership readiness

    Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.

    1,2,3,4,5,6

    Attribute 5: Intercultural and ethical competency

    Graduates are responsible and effective global citizens whose personal values and practices are consistent with their roles as responsible members of society.

    1,2,3,4,5,6

    Attribute 6: Australian Aboriginal and Torres Strait Islander cultural competency

    Graduates have an understanding of, and respect for, Australian Aboriginal and Torres Strait Islander values, culture and knowledge.

    .

    Attribute 7: Digital capabilities

    Graduates are well prepared for living, learning and working in a digital society.

    .

    Attribute 8: Self-awareness and emotional intelligence

    Graduates are self-aware and reflective; they are flexible and resilient and have the capacity to accept and give constructive feedback; they act with integrity and take responsibility for their actions.

    1,2,3,4,5,6
  • Learning Resources
    Required Resources
    Lange, H., A. Saunders, M.M. Cornett (LSC) , Financial Institutions Management , Fourth Edition, McGraw Hill/Irwin ( 2015)
    Recommended Resources
     
    Online Learning
    Lecture material such as presentation, articles, tutorial questions and lecture recordings will be available on MyUni. Solutions to tutorial questions that are not covered in tutorials  will  be made available in the week following the tutorial.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Lectures are supported by problem-solving tutorials developing material covered in lectures.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that students are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes. Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.
    Learning Activities Summary

    Week

    No

    Topic

    Reading

     

    1

    1

    Introduction

     

     

     

    Overview of Financial Institutions

    SCE, Ch 1 & Ch 2

     

    2

    2

    Measuring Financial Performance

     

     

     

    Financial Statement and Analysis

    SCE app 2A & app 2B

     

     

     

    Concepts of Risk Management

     

     

     

    Measuring Risk Exposure

     

     

    3

    3

    Interest rate risk (Maturity Model)

    SCE, app 8A

    4

     3

    Interest rate risk (Duration & Repricing Models)

    SCE Ch 8 & Ch 9

    5

    4

     Sample Test & Credit Risk (Individual Credit Risk)

    Sample Test, SCE Ch 10 & 11

    6

     

    Mid Semester Test 

    Topics 1 to 3 

     

    7

    4

    Group Assignment & Credit Risk (Loan Portfolio Credit Risk)

    Group assignment brief ,
    SCE Ch 10 & 11

    8

     5&6

     Off-Balance Sheet and Foreign Exchange Risks

    SCE  Ch 16 &  Ch 13

    7

    Market Risk

    SCE Ch 15

    10

    8

    Liquidity Risk

    SCE Ch 12

     

     

    Managing Risk

     

     

    11 

    9

    Liability and Liquidity Management

    SCE Ch19 &20 (Deposit Insurance), LSTAC 2nd ed ch 16, pg 413-417

    12 

    10

    Capital Adequacy

    SCE Ch 21

    13

    Review

    All





  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary

    The assessment components are as follows:
    Assessment Task Due Date Weighting Learning Outcome
    Tutorial Throughout 5% 1-6
    Mid Semester Test (topics 1-3) Week 6  20% 1-3
    Group Assignment Week 12 25% 1,2,3,4,6
    Final Exam (all topics, closed book) Exam Period (see Access Adelaide) 50% 1-5
    Total 100%

    Specific due dates will be published on MyUni.

    Bonus mark for early submission of the  assignment: 2.5 marks

    Assessment Detail
    The assessment consists of tutorials, mid semester test, SGDE group assignment and final examination.

    o Tutorial classes will be held commencing Monday, Week 2.
    Mark on tutorial is given for attendance and participation in tutorials.

    o Mid Semester Test will be held in week 6. It will be an in-person, closed-book test with a duration of 1.5 hours. The test will cover Topics 1 to 3.

    o Group Assignment :
    -Group assignment is to be done in a group up to 4 people. Group members can be from different tutorial classes. All team members are expected to contribute approximately equally to the group assignment. The assignment is due by 11.59pm (Adelaide time) on Friday,  Week 12.

    - Early submission bonus mark : A bonus of 2.5 marks is applied for early submission of the assignment by 11.59pm  (Adelaide time) on Tuesday, Week 12. If the assignment is submitted later than this time, then the bonus is not applied.
    A late assignment (without prior arrangement) will be penalised by a 1 mark reduction (or 4% of the possible maximum mark applicable for the assignment) for each day that it is late.  

    o Final exam will be closed  book, it covers all topics. No minimum mark for the final exam is required to pass the course.

    Submission
    Group assignment reports should be submitted  electronically by the group leader through MyUni site.
    You can upload your assignment directly by following the prompts. For guidance on how to submit your assignment electronically via MyUni, go to http://www.adelaide.edu.au/myuni/tutorials/ and click on the “Submit an Assignment” tutorial. You will need to upload a Word  or pdf version of your assignment to Turnitin. 

    Presentation of Assignments

    •• Students must retain a copy of all assignments submitted.
    • When submitting your assignment, please attach a ‘ Group Assignment Cover Sheet’, which must inlcude the names and student IDs of  all group members. 

    Assignment Guidelines including Referencing Details
    Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. A copy of the guide can also be downloaded from http://www.business.adelaide.edu.au/current/mba/download/2009MBACommSkillsGuide.pdf This publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations etc.

    In preparing any written piece of assessment for your undergraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.)

    The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide. Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.

    Late Assignment Submission
    Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits.

    A late assignment (without prior arrangement) will be penalised by a 1 mark reduction (or 4% of the possible maximum mark applicable for the assignment)  for each day that it is late. 

    Return of Assignments
    Lecturer aims to mark and return assignments to students within fourteen (14) working days of the due date with written feedback. 
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.