CORPFIN 7048 - Applied Financial Institutions Management (M)

North Terrace Campus - Semester 2 - 2016

The course information on this page is being finalised for 2016. Please check again before classes commence.

This course provides an introduction to the management of financial institutions and intermediaries. The course focuses on the importance of ensuring good organizational functioning within institutions to manage the varied types of risk that they may be exposed to. Students are first introduced to the construct of the firm as a legal entity, and how financial institutions have specific requirements that relate to this. The course then examines the principles of the theory and practice of effective organizational structure and policies for successful risk management and how to manage the inter-relationships that are inherent between departments. Students are also introduced to international standards of banking practice and how they impact the functioning of the institutions plus how to define and measure various types of risk these institutions can be exposed to.

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Course Details

Course Code	CORPFIN 7048
Course	Applied Financial Institutions Management (M)
Coordinating Unit	Adelaide Business School
Term	Semester 2
Level	Postgraduate Coursework
Location/s	North Terrace Campus
Units	3
Contact	Up to 3 hours per week
Available for Study Abroad and Exchange	Y
Prerequisites	ACCTING 7019, CORPFIN 7005, COMMERCE 7033, ECON 7200
Assessment	Exam/assignments/tests/presentation/tutorial work as prescribed at first lecture & presentation

Course Staff

Course Coordinator: Adrian Dottore

Dr. Ratna Derina (Erin)
Location: Room 12.37 , 10 Pulteney Street
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.

Learning Outcomes
Course Learning Outcomes
By the end of this course students will:
- Understand the theories of financial intermediaries and the important roles of the financial institutions in the global economy
- Critically evaluate and analyse performance of financial institutions
- Understand the main types of risk financial institutions are exposed to, which includes interest rate risk, credit risk, market risk, off balance sheet risk, liquidity risk, foreign exchange risk and operational risk, and how they are interconnected
- Implement differnet methods to measure the main types of financial institution risks
- Implement methods in managing the risk including asset and liability management, capital management and securitisation
- Understand the application of the international standards of banking practice
- Engage in informed discussion of some of the contemporary issues in an international context, affecting financial institutions and their stakeholders
University Graduate Attributes

No information currently available.
Learning Resources

Required Resources

Lange, H., A. Saunders, M.M. Cornett (LSC) , “Financial Institutions Management” , Third Edition, McGraw Hill/Irwin ( 2012)

Recommended Resources

Supplementary Textbook :
Crouhy, M., D. Galai and R. Mark., “ The Essentials of Risk Management” MGraw Hill (2006)

Additional Reading :

Topic 1 :Financial Services Industry
1. Lewllyn D T, “Banking in the 21st century : The transformation of an industry “ in Readings in Financial Institution management : Modern Technique for a global industry edited by Tom Valentine and Guy Ford, Allen &Unwin (1999)
2. Australian Prudential Regulatory Authority, “Overview of the Australian Deposit-taking Sector”, APRA Insight (1), 2006.

Topic 2 : Performance Analysis and Measuring Risk Exposures
Saunders, J. M.M. Cornett appendix 7A in “Financial Institutions Management, 6th edition McGraw Hill/Irwin (2008)

Topic 10: Managing Risk : Liability and liquidity Management
Lange, H., A. Saunders,J.A. Anderson, D. Thomson, M.M. Cornett (LSATC) , chapter 16 (pages 413-417) in “Financial Institutions Management” , Second Edition, McGraw Hill/Irwin ( 2007)

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*	*Lecturer*
1		Introduction		Erin
		Overview of Financial Institutions	LSC : Ch 1
		Depository Institutions	LSATC Ch 2, Lewllyn
		Non Depository Institutions	LSTAC Ch3
2	2	Measuring Financial Performance		Erin
		Financial Statement and Analysis	Saunders Appendix 7A, LSC app 2A
		Concepts of Risk Management	LSC, CH4
		Measuring Risk Exposure
3	3	Interest rate risk (Maturity Model)	LSC app 5a	Erin
4		Interest rate risk (Duration & Repricing Models)	LSC : Ch 6 & 5	Erin
4 (Thurs)&5 (Wed)	4	Credit Risk	LSC : Ch 10 &11	Erin
6 (Wed)		Mid Semester Test	Topics 1-3
6 (Thurs)	5	Foreign Exchange Risk	LSC : Ch 13	Erin
7	6	Off-balance sheet Activities & Assignment	LSC : Ch 16	Erin
8	7	Market Risk	LSC : Ch9	Erin
9	8	Liquidity Risk	LSC ; Ch14	Erin
		Managing Risk
10	9	Liability and Liquidity Management	LSC: Ch15, LSTAC 2nd ed ch 16, pg 413-417	Erin
11 (Wed)	10	Presentation skills
11 (Thurs)	10	Capital Management (part I)	LSC: Ch18	Erin
12 (Wed)	10	Capital Management (part II)	LSC : Ch 18	Erin
12 (Thurs)	11	Securitisation	LSC : Ch 8	Erin
13	12	Review	All	Erin

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

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

Assessment Summary

The assessment consists of tutorial, mid semester test, group project, group presentation and final examination.
o Tutorial classes will be held commencing the week beginning Monday, August 3rd (week 2). Mark on tutorial is given for class participation and submission of work on tutorial questions.
-Class Participation : • Class participation will be assessed based on student’s active participation in tutorial class.
Student will not receive mark for attending tutorials only without actively participate.

-Submission of Work : • Student needs to submit weekly homework in tutorial class.
Student who copies tutorial answers from the textbook manual or any other sources will receive mark of zero for submission of work.

o Mid Semester Test will be held on Wednesday, September 2nd (week 6) from 2 to 3pm, covers topics 1 to 3.
Student who does not sit the mid semester test and does not provide evidence of adequate reason (e.g. illness or unavoidable work commitment) will receive mark of zero for the test which will not be redeemable (i.e. test will still count for 20 percent of final mark) Student who misses the mid semester test and provides evidence of adequate reason will have weighting on the final exam increased by 20 percentage points.

o Group project is to be done in a group of maximum 4 people.

o Project presentation will be assessed individually with each team member has to present for 5 minutes long.Presentations will be held in week 12.

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

Assessment Detail

• Tutorial                       : 10%
o Submitted Work   5%
o Participation         5%

• Mid Semester Test    : 20%
Will be held on Wednesday,September 2nd from 2 to 3pm in Bonython Hall (week 6)

• Group Project            : 20%
To be done in a group of maximum 4 people, due date is by 4pm on Friday, October 30th (week 12).

• Presentation   : 20%
Will be held in week 12

• Final Exam   : 30%.

Submission

Group assignment report should be submitted as hardcopy as well as sent electronically by 4pm on Friday, October 30th, 2015.

• The hardcopy of the assignment should be submitted into the assignment box in the Professions Hub on the ground floor, 10 Pulteney Street.
• The assignment should also be submitted electronically via the Turnitin Assignment tool on MyUni by the group leader. The link for the Turnitin Assignment tool has been created for you under the Assignment page entitled “FIM Group Assignment Submission”in the 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 version of your assignment to Turnitin.
Hardcopy and softcopy need to be identical. Penalties of 5 % will apply for every day late.

Presentation of Assignments

•• Students must retain a copy of all assignments submitted.
• When submitting the hardcopy of your assignment, please attach a ‘ Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. Lecturers can refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.

Assignment Guidelines including Referencing Details
A copy of the Postgraduate Programs: 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 5% mark reduction for each day that it is late.

Return of Assignments
Lecturer’s aim to mark and return assignments to students within two (2) weeks of the due date with written feedback. Students are responsible for collecting their marked assignments from either their tutorials or lectures. If assignments aren’t collected after two (2) weeks, the assignments will be available at the Student Hub for two (2) weeks.

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
This section contains links to relevant assessment-related policies and guidelines - all university policies.
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.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator