Year
2021
Units
4.5
Contact
1 x 3-hour workshop weekly
Prerequisites
1 BUSN1014 - Financial Markets
2 BUSN1009 - Quantitative Methods
3 BUSN1001 - Accounting Principles
Must Satisfy: (1 and 2 and 3)
Assessment
Assignment(s), Examination(s)
Topic description

This topic provides an introduction of the various lending activities of Australian financial institutions and the risks related to these activities. It includes credit risk assessment, credit risk management, and the management of lending activities. Methodologies related to structuring a loan, traditional techniques for credit analysis, distressed firm prediction and reviewing of the newer models of assessing credit risk will be discussed. Retail lending, commercial lending, corporate lending and corporate services and valuation of assets will be explored.

Educational aims

  • Students will develop an understanding of credit risk analysis and management
  • Students will develop an understanding of loan types, structures and lending practices
  • Through problem solving activities students will develop critical analysis and skills and ability to clearly communicate outcomes of analysis
Expected learning outcomes
On completion of this topic you will be expected to be able to:

  1. Examine the major types of lending products from basic economic principles
  2. Analyse the risk return characteristics and pricing of a loan application
  3. Discuss the behavioural aspects associated with lending decisions
  4. Apply statistical techniques used in decision making at the approval, monitoring and termination stages of lending

Key dates and timetable

(1), (2)

Each class is numbered in brackets.
Where more than one class is offered, students normally attend only one.

Classes are held weekly unless otherwise indicated.

FULL

If you are enrolled for this topic, but all classes for one of the activities (eg tutorials) are full,
contact your College Office for assistance. Full classes frequently occur near the start of semester.

Students may still enrol in topics with full classes as more places will be made available as needed.

If this padlock appears next to an activity name (eg Lecture), then class registration is closed for this activity.

Class registration normally closes at the end of week 2 of each semester.

Classes in a stream are grouped so that the same students attend all classes in that stream.
Registration in the stream will result in registration in all classes.
  Unless otherwise advised, classes are not held during semester breaks or on public holidays.