Financial Institutions

This subject has the following teaching availabilities in 2014:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This course is designed to prepare managers for the newly developing financial services industry, in particular the banking industry. The subject addresses three main issues related to the financial services industry. First, the conceptual issues underlying the financial services industry in order to help students develop a broad view of the management function in financial services. Second, a generic set of tools for managing return and the various kinds of risk facing managers in the financial services industry. Third, regulatory changes that have occurred due to the recent financial crisis. A key component of the subject is an online bank simulation game that will enhance insights in these three issues.

On completion of this subject, students should be able to:

• Discuss the different financial products that financial intermediaries offer
• Manage the investment in—and holding of—financial products
• Discuss the various types of financial risk relevant to financial institutions
• Use a variety of tools to measure and hedge the various financial risks that financial institutions—and in particular banks—face in their day-to-day operations.

• Contribution to class learning (10%)
  • Throughout subject
• Midterm test (15%)
  • 1 hour
  • Middle of subject
• Syndicate project (10%)
  • 4 syndicate reports (each eqivalent of individual 250 word assessment, staggered throughout subject) (30%)
  • Sydicate presentation (equivalent of individual 500 word assessment, end of subject) (10%)
• Final examination (35%)
• Hurdle requirement
• 3 hours
• End of subject

This subject is not available as a breadth subject.