Credit and Lending Decisions (6402.5)

Availability

Unit Outlines

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• Semester 2, 2018, ON-CAMPUS, BRUCE (179617) - View
• Semester 2, 2017, ON-CAMPUS, BRUCE (167782) - View
• Semester 2, 2016, ON-CAMPUS, BRUCE (156981) - View
• Semester 2, 2015, ON-CAMPUS, BRUCE (139419) - View

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Syllabus

This unit encompasses the study of credit origination, analysis and management, including the lending functions, of financial services firms, particularly commercial banks, credit unions and investment banks. It covers the principles of lending, credit risk management and modelling, analytical tools to judge credit worthiness of prospective borrowers, analysis of business and personal loans, small business finance, corporate lending, project finance, leasing, securitization, at both the individual transaction and loan portfolio management levels. It includes consideration of the regulatory aspects of credit risk management, problems loan management and the evolution of risk management approaches including credit derivatives.

Learning Outcomes

Students who successfully complete this unit will be able to:

1. Explain the principles of credit creation and management, including lending and operational aspects of lending institutions;

2. Analyse and evaluate the credit-worthiness of individual and business borrowers through techniques such as financial statement analysis, credit scoring models, modern econometric techniques and credit risk measurement models; and

3. Synthesise and explain the management of credit risk at institutional portfolio level as well as regulatory aspects of credit risk management.

Assessment Items

Contact Hours

Normally 39 hours per semester.

Prerequisites

6392 Business Finance OR 9520 Principles of Finance