BFC3170 Financial intermediation

When you finish this unit, you should be able to:

1. 1

   outline the major risks and related prudential requirements faced by banks and to assess factors to consider in managing these risks

2. 2

   evaluate the various mathematical techniques available to manage interest rate risk including the maturity model, the duration model and the repricing model

3. 3

   evaluate mathematical models in relation to managing credit risk for individual loans and to the loan portfolio

4. 4

   identify suitable qualitative and quantitative indicators of financial institutions' performance

5. 5

   distinguish the various sources of commercial and retail debt funding including liability management, and analyse how the current Australian banking system provides access to such funds

6. 6

   sequence the Basel framework as used in Australia, but emanating from the Basel Committee at the global level

7. 7

   be able to clearly and effectively communicate solutions, applying the knowledge in above areas, in a distinctly logical manner in relation to activities dealing with the management of financial institutions and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFC3170.