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Subject details

Students who successfully complete this subject will be able to:

  1. Explain 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. Demonstrate the measurement of net interest risk and explain how interest rate margin can be used as a source of profitability and risk
  4. Explain the measurement of credit risk and its impact on the management of Financial institutions.
    • The development, regulation, deregulation and performance of the Australian financial system
    • Risks of the financial institutions
    • Regulatory requirements and Off-Balance-sheet activities
    • Interest rate Risk
    • Market Risk
    • Credit Risk
    • Technology and Operational Risk
    • Liquidity and Liability & Liquidity Management
  • Study resources

    • Instructional methods

      • Blog
      • Discussion forum/Discussion Board
      • Online assignment submission
      • Podcasting/Lecture capture
      • Standard Media
      • Web links

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

SWI-ECO10003, or SWI-ECO20004-Macroeconomic Policy , or USA-ECO12-Macroeconomics 1 , or SWI-ECO101

Special requirements

  • OtherDetails -
    • Additional materials

This subject was previously known as Banking and Financial Institutions Management.

This subject expands the understanding of theoretical concepts introduced in prior subjects 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 subject 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 subject.

  • Assignment 1 — Individual (20-30%)
  • Assignment 2 — Individual (20-30%)
  • Invigilated Exam — Individual (40-60%)

Textbook information is pending.

Related degrees

undergraduate SWI-BUS-DEG-2018

Bachelor of Business

  • Bachelor of Business Core Subjects
  • Major in Advertising (this Major is currently in teach-out)
  • Major in Economics
  • Major in Finance
  • Major in Information Systems
  • Major in Marketing
  • Co-Major in Advertising (this Co-Major is currently in teach-out)
  • Co-Major in Economics (for Finance students)
  • Co-Major in Economics (not for Finance students)
  • Co-Major in Finance (cannot be taken with the Finance or Economics Major)
  • Co-Major in Finance (for Economics students)
  • Co-Major in Information Systems
  • Co-Major in Marketing (cannot be taken with the Marketing Major)

undergraduate SWI-CIS-DEG-2018

Bachelor of Business Information Systems

  • Core Subjects Information Systems
  • Major in Business Analysis
  • Major in Data Analytics
  • Co-Major in Economics
  • Co-Major in Marketing