Students

AFIN8003 – Banking and Financial Intermediation

2022 – Session 1, In person/Online-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Fan Yu
fan.yu@mq.edu.au
Keith Woodward
keith.woodward@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
(Admission to MActPrac or MFin) or (ACST603 or ACST6003 or AFIN6012 or ECON649 or ECON6049)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit applies finance theory to the context of operational decision-making and risk management in banking and financial intermediation. The major decision areas for banking management are covered within a regulatory and corporate responsibility framework. Major risks of banks and financial intermediation are being examined.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • ULO1: Examine how financial institutions provide a special set of services to households and firms.
  • ULO2: Explain how banks are regulated and why their risk-taking activities are subject to regulatory oversight.
  • ULO3: Evaluate the risks which banks face and demonstrate how these risks are managed.
  • ULO4: Assess adequacy of a bank's capital base.

General Assessment Information

Late submissions of assessments

Unless a Special Consideration request has been submitted and approved, no extensions will be granted. There will be a deduction of 10% of the total available assessment-task marks made from the total awarded mark for each 24-hour period or part thereof that the submission is late. Late submissions will only be accepted up to 96 hours after the due date and time.

No late submissions will be accepted for timed assessments – e.g., quizzes, online tests.

Table 1: Penalty calculation based on submission time

Submission time after the due date (including weekends)

Penalty (% of available assessment task mark)

Example: for a non-timed assessment task marked out of 30

<  24 hours

10%

10% x 30 marks = 3-mark deduction

24-48 hours

20%

20% x 30 marks = 6-mark deduction

48-72 hours

30%

30% x 30 marks = 9-mark deduction

72-96 hours

40%

40%  x 30 marks = 12-mark deduction

> 96 hours

100%

Assignment won't be accepted

Other assessment criteria for assessment tasks will be provided on the unit iLearn site.

Assessment Tasks

Name Weighting Hurdle Due
Quiz 5% No Week 3
Mid Session Test 20% No Week 7
Individual Assignment 25% No Week 12
Final Examination 50% No University Exam Period

Quiz

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 2 hours
Due: Week 3
Weighting: 5%

 

A quiz will be held covering material from Weeks 1 and 2. Please use the quiz result as an indicator of whether you are progressing satisfactorily in the unit.

 
On successful completion you will be able to:
  • Examine how financial institutions provide a special set of services to households and firms.

Mid Session Test

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: Week 7
Weighting: 20%

 

A mid session test of 90 minutes will be held during the session.

 
On successful completion you will be able to:
  • Examine how financial institutions provide a special set of services to households and firms.
  • Explain how banks are regulated and why their risk-taking activities are subject to regulatory oversight.
  • Evaluate the risks which banks face and demonstrate how these risks are managed.
  • Assess adequacy of a bank's capital base.

Individual Assignment

Assessment Type 1: Report
Indicative Time on Task 2: 12 hours
Due: Week 12
Weighting: 25%

 

Students will complete an individual assignment related to the banking and finance industry. The assignment will be 1000-1500 words.

 
On successful completion you will be able to:
  • Examine how financial institutions provide a special set of services to households and firms.
  • Explain how banks are regulated and why their risk-taking activities are subject to regulatory oversight.
  • Evaluate the risks which banks face and demonstrate how these risks are managed.
  • Assess adequacy of a bank's capital base.

Final Examination

Assessment Type 1: Examination
Indicative Time on Task 2: 20 hours
Due: University Exam Period
Weighting: 50%

 

A two hour exam will be held during the University Examination Period.

 
On successful completion you will be able to:
  • Examine how financial institutions provide a special set of services to households and firms.
  • Explain how banks are regulated and why their risk-taking activities are subject to regulatory oversight.
  • Evaluate the risks which banks face and demonstrate how these risks are managed.
  • Assess adequacy of a bank's capital base.

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Writing Centre for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation

Delivery and Resources

Required technology: Non-programmable calculator.

Learning and teaching strategy: Classes typically consist of a two-hour lecture followed by a one-hour tutorial. Lectures are used to show how the topic fits into the overall unit aims and to establish theory principles. Tutorials are used to apply concepts to real world problems and review homework problems. Participation is strongly encouraged for you to check your progress towards achieving the learning outcomes for the unit.

Textbook: The textbook for the unit is Lange, H., Saunders, A. and Cornett, M.M. (2015), Financial Institutions Management: A Risk Management Approach, 4th edition, McGraw- Hill . Textbook material will be supplemented by articles and handouts. Chapters from the textbook and specified articles should be read prior to attending the scheduled lecture on that topic. Homework problems will be assigned at the end of lectures and should be completed before the tutorial the following week. Handouts and homework questions can be downloaded from the unit's iLearn site each week.

Online learning: iLearn (https://ilearn.mq.edu.au) provides the main online learning support. It is essential that you log in at least twice per week to keep abreast of unit-wide announcements and use the resources to supplement your learning. Lecture slides are available online beforehand for you to download from iLearn. Solutions to homework problems are made available online after the problems are discussed in the tutorial.

Unit Schedule

Week Topic Reading  
1 Introduction to Financial Intermediation and Banks Ch1-3  
2 Risk of Financial Intermediation Ch4  
3 Interest Rate Risk Ch5-6 Quiz Due
4 Managing Interest Rate Risk Ch7-8  
5 Market Risk Ch9  
6 Individual Loan Risk Ch10  
7 Mid-term Test    
8 Public Holiday    
9 Loan Portfolio and Concentration Risk Ch11  
10 Sovereign Risk, Foreign Exchange Risk, and Liquidity Risk Ch12-14  
11 Liability and Liquidity Management Ch15  
12 Off-Balance-Sheet Risk Ch16 Individual Assignment Due
13 Capital Management and Adequacy Ch18  

 

 

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

The Writing Centre

The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Services and Support

Macquarie University offers a range of Student Support Services including:

Student Enquiries

Got a question? Ask us via AskMQ, or contact Service Connect.

IT Help

For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/. 

When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.

Unit information based on version 2022.03 of the Handbook