Credit and Lending Decisions (6402.5)
|Available teaching periods||Delivery mode||Location|
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|0.125||3||Faculty Of Business, Government & Law|
|Discipline||Study level||HECS Bands|
|School Of Information Systems & Accounting||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)
Learning outcomesStudents 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.
Graduate attributes1. UC graduates are professional - communicate effectively
1. UC graduates are professional - display initiative and drive, and use their organisation skills to plan and manage their workload
1. UC graduates are professional - employ up-to-date and relevant knowledge and skills
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
Prerequisites6392 Business Finance OR 9520 Principles of Finance
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Lists of required texts/readings
Sathye, M.; and Bartle, J. (2017) Credit Analysis and Lending Management, 4 th Edition, Mirabel Publishing, Melbourne. The book is available at the Co-op. Bookstore.
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. (2004) The credit risk of complex derivatives, Palgrave-MacMillan. New York.
Basel Committee on Banking Supervision, 2005, International Convergence of Capital Measurement and Capital Standards, Revised Framework; www.bis.org/publ/bcbs118.pdf
Commonwealth Treasury Economic Round Up. Commonwealth Treasury, Canberra.
Donaldson, T. (1989) Credit risk and exposure in securitization and transactions, St. Martin's Press. New York.
Dow Jones Reuters Business Interactive LLC. (2000) Credit risk management report [electronic resource]. Phillips Publications. Potomac. 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.
Gray, B and C. Cassidy (1997) Credit risk in banking: proceedings of a conference at H.C. Coombs Centre for Financial Studies, Reserve Bank of Australia, Sydney.
Heffernan, S. (2005) Modern Banking, John Wiley & Sons, Chichester, England.
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. 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
For Unit readings and resources in the University of Canberra Library
Link to search page for Unit Readings (print materials)
Link to search page for eReserve (electronic materials)
Submission of assessment items
Extensions & Late submissions
All assessment items will be submitted online via the unit Canvas site. The first page of each assessment submission should include the following information:
Word Count (if applicable):
Special assessment requirements
You will obtain a pass or better in this unit if you submit each assessment item, and achieve at least 50 per cent of the total marks for the final examination and obtain a final cumulative mark of at least 50 per cent.
Failure to submit assessment item: If you fail to submit your assessment items by the due dates because of illness, misadventure or unavoidable commitments, please discuss the matter with the unit convener before the due date or as soon as possible thereafter. You will be required to provide appropriate documentary evidence.
If someone is sick, provides appropriate documentary evidence, and does not hand in the assignment on time, he or she will have to do some other piece of assessment. Extension of time for assignment submission would be purely at the discretion of the unit convener.
Required IT skills
Use of calculators, computer, web searching skills and familiarity with excel spreadsheet modelling is required
Work placement, internships or practicums