306-305 Management of Financial Institutions

Prerequisite/s:

Timetable:

Contact:

Objectives:

On completion of this subject a student should:

• develop a thorough knowledge of Australia's financial system;

• understand how to assess financial institution performance;

• be aware of the sources of risk in financial institutions and methods for managing such risk;

• be able to explain pricing decisions of financial institutions;

• be able to critically assess theories of financial intermediation;

• understand the aims and nature of regulation of financial institutions and be able to assess its effects.

Content:

Types of financial institutions and their roles in the Australian financial system. The management of such institutions, including: liquidity management, asset and liability management, capital adequacy policies, credit evaluation and lending policies, product development and pricing, and the provision and pricing of ancillary services such as payments services. Methods of assessing performance of financial institutions; factors affecting performance, such as economies of scale, competition and regulation.

Assessment:

Prescribed Texts:

• Saunders, A., Financial Institutions Management, Irwin, 1994.