Students
ECON335 – The Economics of Financial Institutions
2013 – S1 Day
General Information
Download as PDF
| 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
|
|---|---|
| Credit points |
Credit points
3
|
| Prerequisites |
Prerequisites
6cp at 200 level including (ECON200 or ECON201 or ECON203 or ECON204)
|
| 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 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.
|
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:
- To be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection as the foundation for continuous learning.
- To demonstrate a capacity to work independently including the ability to plan and achieve goals.
- To identify, define and analyse problems and recommend creative solutions within real-world constraints.
- To critically evaluate underlying theories, concepts, assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
- To be intellectually ready to participate in public policy discussions arising in social, business and policy environments.
- To manage, analyse, evaluate and use information efficiently and effectively.
Assessment Tasks
| Name | Weighting | Due |
|---|---|---|
| Class Test | 20% | Week 4 |
| Research Review | 20% | 4 pm Thursday 11 April |
| Final Examination | 60% | University Examination Period |
Class Test
Due: Week 4
Weighting: 20%
In week 4 there will be a Class Test for all students in Econ 350. This test will consist of 40 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.
No supplementary class tests will be granted. In documented cases of illness and misadventure (which will be rigorously assessed), the marks at stake for the class test will be transferred for assessment to the final exam.
On successful completion you will be able to:
- To demonstrate a capacity to work independently including the ability to plan and achieve goals.
- To critically evaluate underlying theories, concepts, assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
Research Review
Due: 4 pm Thursday 11 April
Weighting: 20%
The take-home assignment for Econ 335 will consist of a research exercise involving a case study of the evolution of financial institutions in a particular country. Precise details, and the long-answer questions that make up the research exercise, will be available on the i-learn facility. The assignment is worth 20% of the unit's assessment, and will be marked out of 20.
Submission
The Research Review described above is due at 4.00pm on Thursday, 11 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 11 April will be subject to an immediate penalty of 2 marks (out of the 20 available). For every calendar day after 11 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.
On successful completion you will be able to:
- To be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection as the foundation for continuous learning.
- To demonstrate a capacity to work independently including the ability to plan and achieve goals.
- To critically evaluate underlying theories, concepts, assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
- To be intellectually ready to participate in public policy discussions arising in social, business and policy environments.
- To manage, analyse, evaluate and use information efficiently and effectively.
Final Examination
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.
On successful completion you will be able to:
- To be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection as the foundation for continuous learning.
- To identify, define and analyse problems and recommend creative solutions within real-world constraints.
- To critically evaluate underlying theories, concepts, assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
- To manage, analyse, evaluate and use information efficiently and effectively.
Delivery and Resources
Classes
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 Friday, 2 – 5 p.m. E7B Mason
Evening Wednesday, 6 – 9 p.m. E7B Mason
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/
Required and Recommended Texts and/or Materials
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. 2011, Financial Markets, Institutions and Money, 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.
Technology Used and Required
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.
Learning and Teaching Activities
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.
Unit Schedule
| 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. |
Policies and Procedures
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://www.mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://www.mq.edu.au/policy/docs/assessment/policy.html
Grading Policy http://www.mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://www.mq.edu.au/policy/docs/gradeappeal/policy.html
Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html
Special Consideration Policy http://www.mq.edu.au/policy/docs/special_consideration/policy.html
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Academic Honesty
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:
- all academic work claimed as original is the work of the author making the claim
- all academic collaborations are acknowledged
- academic work is not falsified in any way
- when the ideas of others are used, these ideas are acknowledged appropriately.
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
Grades
Macquarie University uses the following grades in coursework units of study:
- HD - High Distinction
- D - Distinction
- CR - Credit
- P - Pass
- F - Fail
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
Grading Appeals and Final Examination Script Viewing
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.
Special Consideration Policy
The University is committed to equity and fairness in all aspects of its learning and teaching. In stating this commitment, the University recognises that there may be circumstances where a student is prevented by unavoidable disruption from performing in accordance with their ability. A special consideration policy exists to support students who experience serious and unavoidable disruption such that they do not reach their usual demonstrated performance level. The policy is available at:
http://www.mq.edu.au/policy/docs/special_consideration/policy.html
Student Support
Macquarie University provides a range of Academic Student Support Services. Details of these services can be accessed at: http://students.mq.edu.au/support/
UniWISE provides:
- Online learning resources and academic skills workshops http://www.students.mq.edu.au/support/learning_skills/
- Personal assistance with your learning & study related questions.
- The Learning Help Desk is located in the Library foyer (level 2).
- Online and on-campus orientation events run by Mentors@Macquarie.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
Details of these services can be accessed at http://www.student.mq.edu.au/ses/.
IT Help
If you wish to receive IT help, we would be glad to assist you at http://informatics.mq.edu.au/help/.
When using the university's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students and it outlines what can be done.
Graduate Capabilities
Discipline Specific Knowledge and Skills
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:
Learning outcomes
- To be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection as the foundation for continuous learning.
- To demonstrate a capacity to work independently including the ability to plan and achieve goals.
- To identify, define and analyse problems and recommend creative solutions within real-world constraints.
- To critically evaluate underlying theories, concepts, assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
- To be intellectually ready to participate in public policy discussions arising in social, business and policy environments.
- To manage, analyse, evaluate and use information efficiently and effectively.
Assessment tasks
- Class Test
- Research Review
- Final Examination
Critical, Analytical and Integrative Thinking
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:
Learning outcomes
- To be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection as the foundation for continuous learning.
- To demonstrate a capacity to work independently including the ability to plan and achieve goals.
- To identify, define and analyse problems and recommend creative solutions within real-world constraints.
- To critically evaluate underlying theories, concepts, assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
- To be intellectually ready to participate in public policy discussions arising in social, business and policy environments.
- To manage, analyse, evaluate and use information efficiently and effectively.
Assessment tasks
- Class Test
- Research Review
- Final Examination
Problem Solving and Research Capability
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.
This graduate capability is supported by:
Learning outcomes
- To be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection as the foundation for continuous learning.
- To demonstrate a capacity to work independently including the ability to plan and achieve goals.
- To identify, define and analyse problems and recommend creative solutions within real-world constraints.
- To critically evaluate underlying theories, concepts, assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
- To be intellectually ready to participate in public policy discussions arising in social, business and policy environments.
- To manage, analyse, evaluate and use information efficiently and effectively.
Assessment tasks
- Research Review
- Final Examination
Effective Communication
We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.
This graduate capability is supported by:
Learning outcome
- To be intellectually ready to participate in public policy discussions arising in social, business and policy environments.
Assessment tasks
- Research Review
- Final Examination
Research and Practice
This unit makes extensive use of Macquarie University researchers, as can be seen from the reading guide, lecture slides, and elsewhere.