Bank Lending Practices and Techniques

Subject FNCE90036 (2010)

Note: This is an archived Handbook entry from 2010.

Credit Points: 6.25
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2010:

September, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable


Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: One 3-hour lecture per week for 6 weeks
Total Time Commitment: Estimated total time commitment of 60 hours per semester
Prerequisites: This subject is only available to those students that would satisfy the entry criteria for the Master of Applied Finance or who have already completed the Postgraduate Diploma in Finance or who have successfully completed 100 points in the Master of Finance (Master of Financial Management).
Corequisites: None
Recommended Background Knowledge: None
Non Allowed Subjects: None
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Coordinator

Dr Ian O'Connor

Contact

Graduate School of Business and Economics Student Centre
Level 4, 198 Berkeley Street
Telephone: +61 3 8344 1670
Online Enquiries: http://www.gsbe.unimelb.edu.au/future/unity_forms/contact.html
Web: www.melbournegsm.unimelb.edu.au
Subject Overview: Characteristics of alternative loan facilities; bank loan pricing principles; principles of credit evaluation; banker-client relationships; approaches to security and collateral; methods of monitoring borrower solvency; and workout situations.
Objectives: On successful completion of this subject, students should be able to:
  • Apply the skills of credit assessment to evaluate the credit risk of a loan facility;
  • Explain the types of loan facilities and their pricing;
  • Determine the most suitable facilities for a particular transaction;
  • Discuss the importance of the banker client relationship and its significance in a commercial loan environment;
  • Describe the characteristics of a defaulting loan;
  • Recommend strategies for risk reduction;
  • Analyse the issues involved in loan work out situations and other cases of financial distress;
  • Explain the procedures for taking security over assets of the borrower.
Assessment:
  • One 2-hour end-of-semester examination (70%)
  • Assignments not exceeding 1500 words (30%)
Prescribed Texts: You will be advised of prescribed texts by your lecturer.
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

On successful completion of this subject, students should have improved the following generic skills:

  • Oral communication

  • Written communication

  • Collaborative learning

  • Problem solving

  • Team work

  • Statistical reasoning

  • Application of theory to practice

  • Interpretation and analysis

  • Critical thinking

  • Synthesis of data and other information

  • Evaluation of data and other information

  • Using computer software

  • Accessing data and other information from a range of sources.
Related Course(s): Master of Applied Finance
Master of Finance
Master of Financial Management

Download PDF version.