Subject details

At the completion of this subject students will be able to:

  1. apply constructive lending practices with due consideration of the interactive relationship between different banking activities, structures and risks
  2. apply knowledge of credit risk assessment principles and processes to conduct proficient credit risk assessment
  3. analyse lending information to detect different credit risk components and to make reasoned judgements appropriate to the circumstances
  4. integrate the spectrum of knowledge and information to generate constructive lending solutions.

  • Topics

    • The role, main activities and organizational structures of banks
    • What is risk, the classification of risk, and the management of risk process
    • Major bank risks and essential components of credit risk
    • Credit culture, strategies and controlling measures
    • Loan pricing
    • Regular forms of bank finance available to customers
    • Different forms of collateral
    • Principles and processes of dealing with credit applications
    • Consumer credit assessment
    • Understanding and interpreting financial statements
    • Business credit assessment
    • Existing loan account management

  • Study resources

    • Online Materials

      • Resources and Links
      • Printable format materials
      • Quizzes

Entry Requirements

Others

You will need knowledge of accounting to work out financial ratios.

Special requirements

No special requirements

This subject was previously known as BAN22 Lending.

This subject addresses the sphere of aspects that are related to the proficient credit risk assessment of consumers and businesses from a banking perspective. The content includes: the role, main activities and organisational structures of banks; essential components of credit risk management and the principles and process of dealing with credit risk assessment.

Please Note: If it’s your first time studying a Curtin University subject you’ll need to complete their compulsory ‘Academic Integrity Program’. It only takes two hours to complete online, and provides you with vital information about studying with Curtin University. The Academic Integrity Program is compulsory, so if it’s not completed your subject grades will be withheld.

Find out more about the Academic Integrity module.

  • Mid-study period test — Assignment based (30%)
  • Invigilated Exam (40%)
  • Case Study (30%)

Textbooks are subject to change within the academic year. Students are advised to purchase their books no earlier than one to two months before the start of a subject.

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