BUSINESS SCHOOL Unit of Study Outline Unit Code BANK6002 Unit Title Bank Management Semester 1, 2019 Pre-requisite Units: Co-requisite Units: FINC5001 Prohibited Units: Assumed Knowledge and/or Skills: Unit Coordinator: Dr Haekwon Lee Address: Room 446, The Business School Building(H69), Darlington NSW 2008 Email: haekwon.lee@sydney.edu.au Phone: 86275097 Consultation Hours: Please go to CANVAS for details of all staff consultation times. Class Day(s): Please go to CANVAS for class times and locations Required Text / Resources: The Prescribed Textbook for this course is: Saunders, A., Cornett, M. (2014). Financial Institutions Management – A Risk Management Approach, 8th edition, McGraw-Hill. Other References: Lange, H., Saunders, A., Cornett, M. (2013). Financial Institutions Management, 4th edition. Macquarie Park: McGraw Hill. (This book provides some institutional details specific to Australian financial institutions but otherwise covers the same concepts as the prescribed textbook, albeit there are some differences in the layout of individual chapters.) A list of Additional Reading material will be made available from the Reference Material folder in Blackboard during the semester. This unit of study outline MUST be read in conjunction with The Business School Unit of Study Common Policy and implementation information that applies to every unit of study offered by the Business School (http://sydney.edu.au/business/currentstudents/policy). All assessment rules, such as standards used, penalties etc, are covered. 1. Unit of Study Information The unifying theme in this unit is the application of modern finance theory to financial decision making in the management of banks and non-bank financial institutions. The subject of bank and financial institution decision-making is approached from a risk perspective. The unit objectives are: (i) To provide students with an understanding of the modern model of financial institutions and the economic functions that they perform; (ii) Identify the main types of risk confronted by financial institutions; (iii) Apply relevant techniques to measure and manage those risks; (iv) To provide students with the ability to critically assess the effectiveness of the techniques used by banks to manage their risks(v) To provide students with an understanding of international bank management and financial services. Version: 2019 Business School 1 BUSINESS SCHOOL 2. Program Learning Outcomes and Unit Learning Outcomes The Program Learning Outcomes for this Program are located at http://sydney.edu.au/business/about/accreditations/AoL Unit Learning Outcomes Unit Learning Outcomes On the successful completion of the Unit you should be able to: Identify and measure the key inherent risks faced by banks. Program Learning Outcomes 1. Business Knowledge Develop and apply strategies using tools and techniques to effectively manage these risks. Identify the strengths and weaknesses that exist in the approaches currently available to measure the financial risks faced by financial institutions. Assess the appropriateness of the various approaches in formulating risk management strategies. Assess the appropriateness of the various approaches in formulating risk management strategies. Present findings in the form of a report, including recommendations for action which are supported by quantitative and qualitative analysis. Participate as a member of a team to undertake analysis of a business situation and to present the team's findings and recommendations. Describe the failings of financial institutions during the 2008 GFC and the identify the extent to which these failings can be traced back to poor ethical and governance frameworks. 2. Critical Thinking 3. Business Analysis and Problem-Solving 1. Business Knowledge 3. Business Analysis and Problem-Solving 4. Communication 1. Business Knowledge 2. Critical Thinking 3. Business Analysis and Problem-Solving 5. Team Working 1. Business Knowledge 3. Assessment Assessment Title Group Assignment part 1 Group Assignment part 2 Program Assessment Individual/ Assessment Learning Due Length Weight Type Group Conditions Outcomes Time Assessed Due Date Closing Date Assignment Group Compulsory 1, 2, 3, 4 1-2 pages 15% 5:00pm 29-Mar-2019 Assignment Group Compulsory 1, 2, 3, 4 5 pages 10% 5:00pm 03-May-2019 05-May-2019 Mid-semester Test In-semester Exam (in-class) Individual Compulsory 2, 3, 4 1 hour 25% 5:00pm 08-Apr-2019 Final Exam Final Exam Individual Compulsory 2, 3, 4 3 hours 50% Academic Honesty Final Exam Period 31-Mar-2019 08-Apr-2019 Final Exam Period Week 4 Assessment details Group Assignment part 1 ● Task Description Version: 2019 Business School 2 BUSINESS SCHOOL The group project topic will be provided by the lecturer by week 2. The due date for the group project is 5pm Friday 29 March 2019. All Assignments must be submitted electronically via Turnitin on CANVAS. A cover page with all group-member names, SID numbers and email addresses, is also required to be submitted to your lecturer in class during week 3. The maximum number of members within a group should not exceed five. The minimum number of group members is four. Time for group work will be made available during the semester. All group members must be from the same Stream of BANK6002. Part 1 of the Group Assignment entails preparation and submission of a written report. The length of the written report should not exceed 2 double-spaced typed pages. ● ● Assessment Criteria 1. Conforming with instructions (e.g. word length, font, other instructions) 2. Presentation, communication & style (written) 3. Clarity of expression (incl. accuracy, spelling, grammar, punctuation) 4. Use of literature/ Knowledge of theory 5. Data/information gathering/processing 6. Analysis 7. Problem solving 8. Critical reasoning / critical thinking Feedback - What, when and how feedback will be provided for this assessment The written feedback for group assignments will be uploaded to CANVAS within two weeks. Students are also encouraged to consult with their lecturer regarding the assignment assessment. Group Assignment part 2 ● ● ● Task Description The group project topic will be provided by the lecturer by week 2. The due date for the group project is 5pm Friday 3 May 2019. All Assignments must be submitted electronically via Turnitin on CANVAS. Students stay in the same groups as for part 1 of the Group Assignment. Time for group work will be made available during the semester. All group members must be from the same Stream of BANK6002. The Group project entails preparation and submission of a written report. The length of the written report should not exceed 5 double-spaced typed pages (including executive summary and references). Assessment Criteria 1. Conforming with instructions (e.g. word length, font, other instructions) 2. Presentation, communication & style (written) 3. Clarity of expression (incl. accuracy, spelling, grammar, punctuation) 4. Use of literature/ Knowledge of theory 5. Data/information gathering/processing 6. Conclusions 7. Analysis 8. Problem solving 9. Critical reasoning / critical thinking Feedback - What, when and how feedback will be provided for this assessment The written feedback for group assignments will be uploaded to CANVAS within three weeks. Students are also encouraged to consult with their lecturer regarding the assignment assessment. Version: 2019 Business School 3 BUSINESS SCHOOL Mid-semester Test ● ● ● Task Description The Mid-semester exam will be held in the regular lecture sessions on Monday 8 April 2019. The Mid-semester exam will be a closed-book test and will examine your familiarity and comprehension of the issues and analytical concepts covered in Weeks 1 to 5 inclusive. All lecture and workshop material covering these sessions will be examinable. Note that this material will be examined again in the Final Exam. Assessment Criteria 1. Conforming with instructions (e.g. word length, font, other instructions) 2. Use of literature/ Knowledge of theory 3. Analysis 4. Problem solving 5. Critical reasoning / critical thinking 6. Synthesis Feedback - What, when and how feedback will be provided for this assessment Feedback on student performance and solutions to the Mid-semester exam will be provided in the workshop within three weeks afterwards. Final Exam ● ● ● Task Description The Final Exam will be held during the University Examination period with the date, time, and location to be advised by the Examinations Centre. The exam will be three (3) hours, closed-book exam, plus an additional ten (10) minutes reading time only. It will account for 50% of your final mark. The final exam may comprise of a combination of multiple choice, short answer, problem solving and discussion questions. It will cover all material included in the unit of study. Assessment Criteria 1. Conforming with instructions (e.g. word length, font, other instructions) 2. Use of literature/ Knowledge of theory 3. Analysis 4. Problem solving 5. Critical reasoning / critical thinking 6. Synthesis Feedback - What, when and how feedback will be provided for this assessment Feedback will be provided after results are officially released by the University. 4. Other Resources for Students All lectures and seminars are recorded and will be available within the LMS for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes. All lectures and seminars are recorded and will be available within Blackboard for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes. Version: 2019 Business School 4 BUSINESS SCHOOL PASS Peer-Assisted Study Sessions (PASS) is a peer-facilitated, cooperative student support scheme aiming to improve students' academic performance by providing extra, free learning opportunities with trained student facilitators. Each session includes problem solving practice in areas directly related to understanding the unit concepts more thoroughly. PASS features small class sizes and a friendly personal approach to help you reinforce key course requirements in a collaborative, active and social learning environment. Registrations open in the first week of semester. For more information or to register, please visit: https://sydney.edu.au/students/peer-assisted-study-sessions.html Email all enquiries about the PASS program to: business.pass@sydney.edu.au Maths in Business The Business School provides a free series of workshops with student facilitators open to all students interested in mastering both basic and upper intermediate level mathematics. The program includes workshops from basic to intermediate level maths and Excel, both of which are fundamental skills for any aspiring business student.The Maths in Business program helps ensure high achievement throughout your business degree. Most foundational units of study require a firm understanding of maths, and this is essential to senior units in accounting, business analytics and finance. Registrations open in the first week of semester. For more information or to register, please visit: https://sydney.edu.au/students/maths-in-business.html Email all enquiries about the Maths in Business program to: business.maths@sydney.edu.au Version: 2019 Business School 5 BUSINESS SCHOOL 5. Unit Schedule Week List of Topics 1 25 Feb 2019 2 4 Mar 2019 3 11 Mar 2019 4 18 Mar 2019 5 25 Mar 2019 6 1 Apr 2019 7 8 Apr 2019 8 15 Apr 2019 9 29 Apr 2019 10 6 May 2019 11 13 May 2019 12 20 May 2019 Introduction and overview of the financial system and the role of Banks - Chapter 1 Assessments Due Interest Rate Risk: Measurement 1 - Chapter 8 Interest Rate Risk: Measurement 2 - Chapter 9 Market Risk: Measurement and the application of Value at Risk - Chapter 10 Credit Risk: Individual Loan Risk Measurement - Chapter 11 GROUP ASSIGNMENT - PART 1 due on 29 March 2019 Credit Risk: Loan Portfolios and Concentration Risk Measurement - Chapter 12 Mid-term exam - In class In class MID-SEMESTER EXAM Credit Risk: Management Techniques - Chapters 26 & 27 Sovereign Risk: Measurement and Management - Chapter 15 GROUP ASSIGNMENT - PART 2 due 3 May 2019 Liquidity Risk: Measurement and Management - Chapter 18 Deposit Insurance and Other Liability Guarantees - Chapter 19 Capital Adequacy - Chapter 20 13 When Risk Management Fails: The 2008 GFC & the 27 May 2019 Regulatory Responses to it Version: 2019 Business School FINAL EXAM DURING THE OFFICIAL EXAMINATION PERIOD ON A DATE AND TIME TO BE ADVISED 6
