Credit Analysis and Lending (11232.2)

Please note these are the 2024 details for this unit
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Credit Analysis and Lending
Available teaching periods Delivery mode Location
View teaching periods Flexible
 UC - Canberra, Bruce
EFTSL Credit points Faculty
0.125 3 Faculty Of Business, Government & Law
Discipline Study level HECS Bands
Canberra Business School Level 2 - Undergraduate Intermediate Unit Band 4 2021 (Commenced After 1 Jan 2021)
Band 4 2021 (Commenced After 1 Jan Social Work_Exclude 0905)
Band 5 2021 (Commenced Before 1 Jan 2021)
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, securitisation, 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. This unit also covers the legal and ethical responsibilities lending institutions have towards their clients.

Learning outcomes

After successful completion of this unit, students will be able to:
1. Develop a solid understanding of the principles of credit creation and management, including lending and operational aspects of lending institutions;
2. Appraise credit-worthiness through techniques such as financial statement analysis and credit risk measurement models;
3. Critique the various credit risk management techniques; and
4. Evaluate institutions' practices in relation to their legal and ethical responsibilities to their clients.


Graduate attributes

1. UC graduates are professional - communicate effectively
1. UC graduates are professional - use creativity, critical thinking, analysis and research skills to solve theoretical and real-world problems
1. UC graduates are professional - work collaboratively as part of a team, negotiate, and resolve conflict
2. UC graduates are global citizens - behave ethically and sustainably in their professional and personal lives
2. UC graduates are global citizens - think globally about issues in their profession
3. UC graduates are lifelong learners - adapt to complexity, ambiguity and change by being flexible and keen to engage with new ideas
4. UC graduates are able to demonstrate Aboriginal and Torres Strait Islander ways of knowing, being and doing - apply their knowledge to working with Indigenous Australians in socially just ways


Prerequisites

11326 Financial Institutions and Markets.

Corequisites

None.

Incompatible units

None.

Equivalent units

6402 Credit and Lending Decisions.

Assumed knowledge

None.
Availability for enrolment in 2024 is subject to change and may not be confirmed until closer to the teaching start date.
Year Location Teaching period Teaching start date Delivery mode Unit convener
2023 UC - Canberra, Bruce Semester 1 06 February 2023 Flexible Prof Milind Sathye
2024 UC - Canberra, Bruce Semester 1 05 February 2024 Flexible Prof Milind Sathye
The information provided should be used as a guide only. Timetables may not be finalised until week 2 of the teaching period and are subject to change. Search for the unit timetable.

Required texts

Lists of required texts/readings

Sathye, M.;  and Bartle, J.  (2022) Credit Analysis and Lending Management, 5th Edition (ISBN 978-1-925954-27-2),  Mirabel Publishing, Melbourne.  The book is available at the Book Locker or Vital Source.

Recommended readings:

From time to time you may find it useful to consult the Australian accounting/banking/finance professional and academic journals as well as financial and business newspapers, including the Australian Financial Review, Business Review Weekly, National Accountant, CA Magazine, In the Black CPA, Journal of Corporate Finance, Journal of Banking and Finance, Journal of Portfolio Management, Accounting and Finance, Global Finance Journal etc These are available in UC library or through inter-library loans. It is also important that students regularly visit the websites of APRA, RBA, ABA, and others to keep themselves up-to-date with recent policy decisions.

Note also that there is a range of excellent textbooks/resources on the unit in the University library including the following: 

Banks, E., 2016. The credit risk of complex derivatives. Springer, USA.
Basel Committee on Banking Supervision, 2023, The Basel Framework. https://www.bis.org/basel_framework/
Commonwealth Treasury Economic Round Up (various issues). Commonwealth Treasury, Canberra.
Donaldson, T.H., 1989. Credit risk and exposure in securitization and transactions. Springer, USA.
Fraser, D., Gup, B., and J. Kolari., 2007. Commercial Banking: The management of risk, John Wiley & Sons, Australia.
Gestel, T. and B. Baesens., 2009. Credit risk management: basic concepts: financial risk components, rating analysis, models, economic and regulatory capital, Oxford University Press. New York.
Organisation for Economic Cooperation and Development, 2006. Credit Risk and Credit Access in Asia, Organisation for Economic Cooperation and Development. Geneva.
Reserve Bank of Australia, Bulletin and Annual Reports (various issues). Reserve Bank of Australia, Sydney.
Saunders, A., 1999. Credit risk measurement: new approaches to value-at-risk and other paradigms, Wiley. Chichester. New York.
Weaver, P. and C. Kingsley., 2001. Banking and Lending Practice, Law Book Co. Sydney

Submission of assessment items

Extensions & Late submissions

All assessments are to be submitted on Canvas except final exam.

Special assessment requirements

Information on extensions and special consideration for assessments can be found in the Student Guide to Policies.

 

You will obtain a pass or better in this unit if you submit each assessment item, and obtain a final cumulative mark of at least 50 percent.

 

 

Supplementary assessment

Refer to the Assessment Policy and Assessment Procedures.

Academic integrity

Students have a responsibility to uphold University standards on ethical scholarship. Good scholarship involves building on the work of others and use of others' work must be acknowledged with proper attribution made. Cheating, plagiarism, and falsification of data are dishonest practices that contravene academic values. Refer to the University's Student Charter for more information.

To enhance understanding of academic integrity, all students are expected to complete the Academic Integrity Module (AIM) at least once during their course of study. You can access this module within UCLearn (Canvas) through the 'Academic Integrity and Avoiding Plagiarism' link in the Study Help site.

Use of Text-Matching Software

The University of Canberra uses text-matching software to help students and staff reduce plagiarism and improve understanding of academic integrity. The software matches submitted text in student assignments against material from various sources: the internet, published books and journals, and previously submitted student texts.

Participation requirements

None

Required IT skills

Use of calculators, computer, web searching skills and familiarity with excel spreadsheet modelling is required

Work placement, internships or practicums

None

Next step

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