Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Sean Turnell
Contact via sean.turnell@mq.edu.au
E4A 426
Available on iLearn
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Credit points |
Credit points
3
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Prerequisites |
Prerequisites
6cp at 200 level including (ECON200 or ECON201 or ECON203 or ECON204)
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
This unit provides an overview of the Australian and global financial systems and examines, in depth, the various aspects of financial institutions management. Topics include: the objectives and performance of financial institutions; risks and their controls; asset and liability management; off balance sheet banking; merchant banking; central banking; capital adequacy; and regulation. The unit pays particular attention to the events and circumstances that, in recent times, have caused great difficulties in the financial sector, as well as the lessons learnt as a consequence. The role that financial institutions play in economic development is explored, as are the problems and possibilities of what has become known as microfinance. Rigorous economic analysis is central to the methodological approach of this unit but other disciplines, such as history, are also employed to provide a fully rounded picture.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
Name | Weighting | Due |
---|---|---|
Research Review | 20% | 4 pm Thursday 9 April |
Class Test | 20% | Week 10 |
Final Examination | 60% | University Examination Period |
Due: 4 pm Thursday 9 April
Weighting: 20%
Write a 1600 word summary and evaluation of one of the two articles listed below. A "review essay" is a summary of your own words of the article you have chosen to review, together with an appraisal of it. Your review essay should be about 60% summary and 40% appraisal. Summary means you summarize the main points and explain the chosen article in your own words. Figures, tables, or equations in the article may not be includedbin your essay. Appraisal means you express your thoughts about the article. For example, whether thebarticle is full of insightful remarks, whether the article gives adequate consideration/analysis of the main
issues, or if the article covers too much or too little ground, any additional aspects should be included in the article. Your bibliography can be minimal.
Submission
The Research Review described above is due at 4.00pm on Thursday, 9 April. This assignment must be handed in at the box provided in BESS.
Before the due date the assignment must also be submitted to Turnitin. Assignments not submitted through this programme will recieve zero marks.
Extension
Except in the cases of documented illness or misadventure, no requests for extensions will be entertained.
Penalties
Any assignment submitted after 4.00pm on Thursday 9 April will be subject to an immediate penalty of 2 marks (out of the 20 available). For every calendar day after 9 April that an assignment is still outstanding, a further 2 marks will be deducted.
What is required to complete the unit satisfactorily
Handing in the assignment is a necessary condition for satisfactorily completing Econ 335.
The Two Articles
Choose one of the following to write your review:
1. Gambacorta, L. and van Rixtel, A. 2013, 'Structural Bank Regulation Initiatives: Approaches and Implications', BIS Working Papers, No.412, April 2013, <http://www.bis.org/publ/work412.htm>
2. Stewart, C., Robertson, B. and A. Heath 2013, 'Trends in the Funding and Lending Behaviour of Australian Banks', Reserve Bank of Australia, Research Discussion Paper, RDP 2013-15, December 2013, <www.rba.gov.au/publications/rdp/2013/pdf/rdp2013-15.pdf>
Due: Week 10
Weighting: 20%
In week 10 there will be a Class Test for all students in Econ 335. This test will consist of true/false questions, drawn from lecture topics up to that point, and external readings (which will be listed on i-learn and as notified in class). The test will take place in lectures and, as such, you are required to attend the Test according to the lecture stream in which you are enrolled. The tests for both streams (ie, day and evening) cover the same material, but the questions are completely different. There will be no advantages to anyone having access to the questions asked in the other stream, or even from discussing these with other students (as you will see). Normal examination conditions will apply of course, and you must bring with you your official University ID card.
Due: University Examination Period
Weighting: 60%
The final examination will consist of true/false and essay-type questions. Further details relating to the number of questions and so on will be given closer to the Exam.
This two hour final exam will be held during the University Examination period.
You are expected to present yourself for examination at the time and place designated in the University Examination Timetable. The timetable will be available in Draft form approximately eight weeks before the commencement of the examinations and in Final form approximately four weeks before the commencement of the examinations:
http://www.exams.mq.edu.au/
The only exception to not sitting an examination at the designated time is because of documented illness or unavoidable disruption. In these circumstances you may consider applying for Special Consideration. Information about unavoidable disruption and the special consideration process is available at: http://www.reg.mq.edu.au/Forms/APSCon.pdf
If a Supplementary Examination is granted as a result of the Special Consideration process, the examination will be scheduled after the conclusion of the official examination period.
You are advised that it is Macquarie University policy not to set early examinations for individuals or groups of students. All students are expected to ensure that they are available until the end of the teaching semester, the final day of the official examination period.
In the unlikely event of documented illness or misadventure a supplemntary exam may be awarded. Such an exam would consist of essay-type questions only.
Students attend three classroom hours per week, comprising lectures using a mix of theory and practical applications, delivered in First Semester in the following sessions:
Day thursday, 12 – 3 p.m. C5C T1
Evening Friday, 6 – 9 p.m. E7B T3
Students are expected to attend the full quota of lectures; all the material covered in class is examinable. Of course, you only have to attend one of these streams. Note that there is no lecture in Week 2.
If you are ever in doubt about timetabling and class times and places, see the University’s website: http://www.timetables.mq.edu.au/
There is no ‘set’ textbook for Econ 335.
One very useful textbook for the course (as it is for the ‘sister unit’, Econ 350, Money and Finance) is Kidwell, D. et al. 2012, Financial Markets, Institutions and Money, (11th edn) John Wiley & Sons, Milton, Qld.
Other useful books include:
(a) Australian
Gup, B.E., Avram, K. et.al., (2007) Commercial Banking: The Management of Risk, Melbourne: John Wiley & Sons Australia.
Saunders, A. and Lange, H. (2007), Financial Institutions Management: A Modern Perspective, Sydney: Irwin.
Valentine, T. et al. 2011, Financial Markets and Institutions in Australia, Pearson, Frenchs Forest, NSW
Hunt, B. and Terry, C. 2008, Financial Institutions and Markets, 5th edn, Thomson
(b) International
A. Saunders and Cornett, M.M. (2007) Fundamentals of Financial Institutions Management, 6th Edn, Boston: Irwin.
Sinkey, J.F. (2002), Commercial Bank Financial Management, 5th ed., Macmillan.
It is my expectation that the lectures of Econ 335 will be recorded on the University’s i-Lecture facility. This can be found at: http://ilearn.mq.edu.au
The iLearn facility at this same site will also be the main vehicle through which unit communications will be made, and via which students can communicate with each other.
As noted above, this unit is taught via three hours of lectures per week. In terms of student activity in relation to this, it is suggested that lecture slides and/or any readings be read in advance. Meanwhile, keeping up to speed on events impacting financial institutions and markets will be highly advantageous.
Week | Lecture Topics |
1 | Introduction – Functions and Forms of Banking, Regulatory Overview |
2 | The Theoretical Rationale of Financial Institutions. Case Study Extra: The Pillars of Australian Banking |
3 | The Management of Financial Institutions I: Liabilities Management. Case Study Extra: The Global Network Banks, HSBC, Standard Chartered, Citigroup |
4 | The Management of Financial Institutions II: Credit Evaluation. Case Study Extra: Banking on the USA |
5 | The Management of Financial Institutions III: Commercial, Real Estate and Consumer Lending. Case Study Extra: Banking European Style |
6 | The Management of Financial Institutions IV: Securities Portfolio Management. Case Study Extra: Emerging Market Banks |
7 | The Management of Financial Institutions V: Interest Rate Risk Management. |
8 | The Management of Financial Institutions VII: Liquidity Management. |
9 | The Management of Financial Institutions VIII: Capital Management. |
10 | Financial Institutions and Economic Development. |
11 |
Moneylenders, Informal, and Microfinance Institutions. |
12 |
The Zeitgeist: Foreign banking, shadow banking, 'crowd funding'. |
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy.html
Grading Policy http://mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html
Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
The nature of scholarly endeavour, dependent as it is on the work of others, binds all members of the University community to abide by the principles of academic honesty. Its fundamental principle is that all staff and students act with integrity in the creation, development, application and use of ideas and information. This means that:
Further information on the academic honesty can be found in the Macquarie University Academic Honesty Policy at http://www.mq.edu.au/policy/docs/academic_honesty/policy.html
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Grade descriptors and other information concerning grading are contained in the Macquarie University Grading Policy which is available at:
http://www.mq.edu.au/policy/docs/grading/policy.html
If, at the conclusion of the unit, you have performed below expectations, and are considering lodging an appeal of grade and/or viewing your final exam script please refer to the following website which provides information about these processes and the cut off dates in the first instance. Please read the instructions provided concerning what constitutes a valid grounds for appeal before appealing your grade.
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http://www.mq.edu.au/policy/docs/special_consideration/policy.html
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Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
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Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.
This graduate capability is supported by:
We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.
This graduate capability is supported by:
Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.
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This unit makes extensive use of Macquarie University researchers, as can be seen from the reading guide, lecture slides, and elsewhere.