Students

ECON2035 – The Economics of Financial Institutions

2023 – Session 2, Online-scheduled-weekday

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Ha Vu
ha.vu@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
50cp at 1000 level or above including ECON110 or ECON111 or ECON1020
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit provides an overview of the Australian and global financial systems and the management of financial institutions. Topics may include: the objectives and performance of financial institutions; risks and their controls; asset and liability management; credit evaluation; capital adequacy and regulations; informal money lenders and microfinance institutions; and shadow banking. 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.

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: Identify and describe aspects in the operation and management of banks, and other types of financial institutions.
  • ULO2: Identify, define and analyse problems associated with financial markets and recommend creative solutions within real-world constraints.
  • ULO3: Demonstrate a capacity to work independently, including the ability to research, form challenging and coherent arguments, and write short-discussion pieces.

Assessment Tasks

Name Weighting Hurdle Due
Weekly Online Discussion 20% No Weekly starting Week 2
Test 30% No Week 7, Monday 04/09./2023
Final Examination 50% No University Examination period

Weekly Online Discussion

Assessment Type 1: Participatory task
Indicative Time on Task 2: 22 hours
Due: Weekly starting Week 2
Weighting: 20%

Every week, students are required to post their response to the discussion question in iLearn.
On successful completion you will be able to:
  • Identify and describe aspects in the operation and management of banks, and other types of financial institutions.
  • Identify, define and analyse problems associated with financial markets and recommend creative solutions within real-world constraints.
  • Demonstrate a capacity to work independently, including the ability to research, form challenging and coherent arguments, and write short-discussion pieces.

Test

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 3 hours
Due: Week 7, Monday 04/09./2023
Weighting: 30%

A one-hour test will be held in week 7.
On successful completion you will be able to:
  • Identify and describe aspects in the operation and management of banks, and other types of financial institutions.
  • Identify, define and analyse problems associated with financial markets and recommend creative solutions within real-world constraints.

Final Examination

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

 

A two-hour exam will be held during the end of session Formal Examination Period, and will consist of true/false, short-answer, and essay-type questions.

 
On successful completion you will be able to:
  • Identify and describe aspects in the operation and management of banks, and other types of financial institutions.
  • Demonstrate a capacity to work independently, including the ability to research, form challenging and coherent arguments, and write short-discussion pieces.

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

Each week, there will be a pre-recorded lecture posted on the unit iLearn page, along with the lecture slides.

Starting in Week 2, there will be one-hour tutorial class (via zoom) on Monday 1-2pm or Monday 5-6pm to discuss questions regarding the lecture topics.

All materials for the unit, such as pre-recording lectures, lecture notes, readings, and discussion questions will be available to students on the unit iLearn site at http://ilearn.mq.edu.au. Students are strongly encouraged to check the unit iLearn page weekly for announcements as well as the unit schedule, additional readings, assessment information, and discussion questions.

There is no prescribed textbook for Econ2035. You are highly recommended to check ilearn regularly for the updates of readings posted. 

Recommended Texts and/or Materials

(i) Kidwell, D. et al. 2019, Financial Markets, Institutions and Money (4th edn), Australian Edition, John Wiley & Sons Australia.

(ii) Madura, J. 2018, Financial Markets and Institutions (12th edn), Cengage Learning, 

(iii) Calomiris and Haber, 2014, Fragile by Design - The political origins of banking crises and scarce credit

Other useful resources: 

www.wsj.com

www.ft.com

www.bloomberg.com

www.theeconomist.com

www.rba.gov.au

www.bis.org

Technology Used and Required

iLearn; i-Lecture

Unit Schedule

Throughout the session, we will be looking at the following 10 topics: 

1

 An Overview of Financial Institutions, Risks and Regulations

2

The Theoretical Rationale of Financial Institutions

3

Liabilities Management

4

Credit risk Management

5

Securities Portfolio Management

6

Interest Rate Risk Management

7

Liquidity Management

8

Capital Management

9

Financial Institutions in Less Developed countries

10

Managing Financial Crises

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 2023.06 of the Handbook