Credit Analysis and Lending (12089.1)

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 On-campus
Online self-paced
 Bruce, Canberra
EFTSL Credit points Faculty
0.125 3 Faculty Of Business, Government & Law
Discipline Study level HECS Bands
Canberra Business School Level 3 - Undergraduate Advanced 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
2. UC graduates are global citizens - adopt an informed and balanced approach across professional and international boundaries
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 AND 11232 Credit Analysis and Lending.

Assumed knowledge

None.
Availability for enrolment in 2026 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
2025 Bruce, Canberra Semester 1 03 February 2025 On-campus Prof Milind Sathye
2025 Bruce, Canberra Semester 1 03 February 2025 Online self-paced Prof Milind Sathye
2026 Bruce, Canberra Semester 1 16 February 2026 Online self-paced Prof Milind Sathye
2026 Bruce, Canberra Semester 1 16 February 2026 On-campus Prof Milind Sathye
Not available

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

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.

Students must apply academic integrity in their learning and research activities at UC. This includes submitting authentic and original work for assessments and properly acknowledging any sources used.

Academic integrity involves the ethical, honest and responsible use, creation and sharing of information. It is critical to the quality of higher education. Our academic integrity values are honesty, trust, fairness, respect, responsibility and courage.

UC students have to complete the Academic Integrity Module annually to learn about academic integrity and to understand the consequences of academic integrity breaches (or academic misconduct).

UC uses various strategies and systems, including detection software, to identify potential breaches of academic integrity. Suspected breaches may be investigated, and action can be taken when misconduct is found to have occurred.

Information is provided in the Academic Integrity Policy, Academic Integrity Procedure, and University of Canberra (Student Conduct) Rules 2023. For further advice, visit Study Skills.

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