To pass this unit (requires a Mark of 50 or better) the student must pass the final examination.

CLASSES

Face-to-Face Teaching: Generally 20 hours

Timetable: Detailed timetable for classes are on the Centre’s web site www.mafc.mq.edu.au

Consultation Times: 

Students who wish to contact any of the teaching staff may do so through:

• The Unit’s iLearn site, in relation to general queries (so that all students may benefit); or 
• Individual consultation with the lecturer by email in the first instance, if necessary.

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Text: None.

Additional Readings: 

• Additional readings are included in the unit notes. Spreadsheets critical to the unit are available on iLearn.
• Students should assume these readings and spreadsheets are examinable unless otherwise advised.

Lecture Notes: Available on iLearn.

Study Problems: 

• Students are required to work systematically through the practice problems. These problems will not be collected but they will help you prepare for the exams.
• Answers to the numerical practice problems are included in the unit notes or on iLearn.

Pre-Unit Materials: Information papers on statistics, regression, accounting and other material may be found at http://www.mafc.mq.edu.au/precourse/future_students.htm. Students should work through this material prior to commencing the degree.  The material will remain a useful reference as students progress through the program.

Calculators: 

• A financial calculator that can handle time value of money calculations, logs and power functions is required.
• The Hewlett Packard calculator hp17bII+ is recommended.
• In examinations, hand held calculators are permitted. Mobile phones and computers are not permitted.

Assumed Knowledge:

• The mathematical difficulty of this unit is not greater than in Financial Risk Management.
• Students are advised to review the Financial Risk Management notes before beginning this Unit, as knowledge of the credit material from that Unit will be assumed, with limited revision.

Assumed Access:

• Access to a computer with word processing and spreadsheet capability and internet access are assumed, as is general student computer literacy.
• There is some EXCEL modelling work in the unit.

TECHNOLOGY USED AND REQUIRED

Unit iLearn Site: 

• Found by logging on to iLearn ilearn.mq.edu.au, then clicking AFCP863 Strategic Bank Management.
• This is where you will find forums, downloadable resources and links to important pages. 
• Forums allow you to communicate with other students and lecturer(s) and may provide supplementary material.
• Please post questions to a forum at least 24 hours prior to the assignment submission date or the examination date. Questions posted after that time may not be answered. Please try to not leave your questions to the last few days.   

Important Notice: 

• It is important that you familiarize yourself with the Unit’s iLearn site. 
• Students should check the Unit’s iLearn site regularly (minimum twice a week and prior to all lectures) and look for updates and distribution of materials (including case studies) related to the unit or assessments and, if relevant, participate in forum discussions. 

TOPIC 0. OVERVIEW AND STRUCTURE OF THE UNIT

• Navigation of the unit, and linkages between core concepts

TOPIC 1. INTRODUCTION

• What is strategy, and how does it differ from effectiveness?
• How do banks generate returns for their shareholders?
• The role of the banking system in the economy (details in Topic 2)
• Why regulation is important, and difficult (details in Topic 3)

TOPIC 2. BANKING, MONEY AND ECONOMIC GROWTH

• What is money, and why does the money supply matter for the economy?
• How has money developed through different forms?
• What does a central bank do?
• What is the relationship between commercial banks and the money supply?

TOPIC 3. BANK REGULATION

• The Regulatory Landscape
• Pillar 1: Prudential Regulation
• Pillar 1: Liquidity Regulation
• Pillar 2
• Other Regulation

TOPIC 4. MANDATED RISK MANAGEMENT TOOLS

• Pillar 2 Supervisory Review Process
• Risk Management Framework (RMF)
• Risk Appetite Statement (RAS)
• Internal Capital / Liquidity Adequacy Assessment Process (ICAAP/ILAAP)
• Stress Testing (ST)
• Recovery and Resolution Plans (RRP)

TOPIC 5. DISRUPTIVE INNOVATION

• Reinventing banks
• Shadow banking
• Peer-to-peer finance
• Bitcoin and re-inventing money
• (How) can banks respond?

Assessment Tasks section updated. Fail Hurdle grade added to grading descriptors table.

This Unit Guide may be subject to change. The latest version is on the Centre’s web site www.mafc.mq.edu.au.

Students should read the Unit Guide carefully at the start of semester.  It contains important information about the unit.  If anything is unclear, please consult one of the unit lecturers.  

University Policy on Grading:

• Macquarie University’s Academic Senate has established a Grading Policy available at http://www.mq.edu.au/policy/docs/grading/policy.html. Your final result will include: 
  • A Grade ranging from Fail Hurdle to High Distinction; and
  • A numerical Mark which is a summation of the individual assessment components, providing the examination component is passed.
• It is important to note:
  • The Policy does not require that a minimum or maximum number of students are to be failed in any unit; 
  • Grades will not be allocated to fit a predetermined distribution; and
  • Grades for all individual assessment items will be released to students, but Marks may not necessarily be released.

Specific Unit Grading: 

• To pass this unit (requires a Mark of 50 or better) the student must pass the final examination.
  • Students who have attained a total raw mark of 50% or greater in a unit, but have failed the Unit’s exam requirement and who have demonstrated “sufficient effort” in the exam, will be granted a single opportunity to sit a Supplementary Exam which will be graded on a pass/fail basis. The unit mark and grade for students who pass this examination will be those corresponding to the original total raw mark of all their assessment tasks, including the original exam. That is, the Supplementary Hurdle Exam only determines the meeting of the hurdle requirement. Students who have attained a raw mark of 50% or greater in a unit, yet failed all attempts at the requirement, will be awarded an FH grade with a final mark of 49.
• All final Marks and Grades in the Applied Finance Centre are determined by a grading committee and are not the sole responsibility of the unit convenor.
• The core criteria used to assess student work in this unit are: 
  • Knowledge and understanding: Understanding key ideas, knowledge and use of concepts.
  • Application: Ability to apply theoretical ideas and frameworks in practice and in a critically reflective way. 
  • Reasoning and analysis: Ability to analyse, use critical reasoning and principles to formulate a position, balancing theory and personal reflection. 
  • Professional literacy and research: Understanding of professional factors (language and landscape) and ability to undertake appropriate research. 
  • Communication and presentation: Ability to communicate and present effectively (written and oral, as relevant).
  • Use of mathematical and statistical ideas: Ability to use mathematical and statistical ideas, methods and formulae appropriately. 
• Performance in relation to each of these criteria are assessed against the University’s grading descriptors:

Review of Grade and final examination Script viewing:

• A student who has been awarded a final grade for a unit and who does not believe it is an accurate reflection of their performance, and has grounds for such a claim and can demonstrate those grounds, may apply to have their grade reviewed. 
• For information on requesting a review of grade and/or viewing your final exam script, please refer to the University’s Grade Appeal Policy at http://www.mq.edu.au/policy/docs/gradeappeal/policy.html and MAFC Program Rules & Procedures at http://www.mafc.mq.edu.au.