Banking Operations and Governance (Previously Banking and Financial Institutions Management) - 2017

Unit summary


  • Level of Study: Undergraduate Level 2
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: Yes
  • Duration: 13 weeks
  • Government loans available: FEE-HELP, HECS-HELP
  • Availability for 2016: SP3
  • Availability for 2017: SP2
  • Assessment: Assignment 1 - Individual (10-20%) , Assignment 2 - Individual (20-30%) - Learn more

Unit provided by

2017 Fees
Domestic 2,893.00
HECS 1,324.00
International 3,143.00

This unit expands the understanding of theoretical concepts introduced in prior units on monetary policy and financial markets. Students will be taken through the development, regulation and deregulation of the Australian financial market, and how changes have corresponded to changes in economic thought. The unit provides an overview of monetary theory, debt, equity and derivative markets and the role of derivative products in risk management. The impacts of how changes in official interest rates are transmitted to activity in the real economy are also explored as are current fiscal and monetary policy.

Please note: assessment values are indicative only, details will be advised at the start of the unit.

After successfully completing this unit, you will be able to:

  1. Appreciate the special functions of Financial institutions and how financial intermediation benefits the economy
  2. Explain key balance sheet and regulatory features of the major financial services industry
  3. Explain how net interest risk is measured and interest rate margin as a source of profitability and risk
  4. Explain the measurement of credit risk and how it adversely affects the management of Financial institutions.
  • Assignment 1 — Individual (10-20%)
  • Assignment 2 — Individual (20-30%)
  • Invigilated Exam — (60 - 70%)
For more information on invigilated exams see Exams and results

Mandatory prerequisites

You must have successfully completed the following unit(s) before starting this unit:

If you have completed equivalent study at another university, please contact a Student Advisor for advice.

  • Additional materials
  • Broadband access

This unit addresses the following topics.

1The development, regulation, deregulation and performance of the Australian financial system
2Risks of the financial institutions
3Regulatory requirements and Off-Balance-sheet activities
4Interest rate Risk
5Market Risk
6Credit Risk
7Technology and Operational Risk
8Liquidity and Liability & Liquidity Management

This unit is delivered using the following methods and materials:

Instructional Methods

  • Blogs
  • Discussion Forum/Discussion Board
  • Online assignment submission
  • Podcasting/Lecture capture
  • Standard Media
  • Web links

This unit is part of a major, minor, stream or specialisation in the following courses:

This unit may be eligible for credit towards other courses:

  1. Many undergraduate courses on offer through OUA include 'open elective' where any OUA unit can be credited to the course. You need to check the Award Requirements on the course page for the number of allowed open electives and any level limitations.
  2. In other cases, the content of this unit might be relevant to a course on offer through OUA or elsewhere. In order to receive credit for this unit in the course you will need to supply the provider institution with a copy of the Unit Profile in the approved format, which you can download here. Note that the Unit Profile is set at the start of the year, and if textbooks change this may not match the Co-Op textbook list.

Textbook information for this unit is currently being updated and will be available soon. Please check back regularly for updates. Alternatively, visit the The Co-op website and enter the unit details to search for available textbooks.

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