25522 Financial Services and Products
UTS: Business: Finance and EconomicsCredit points: 6 cp
Subject level: Undergraduate
Result Type: Grade and marksRequisite(s): 25556 The Financial System
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.
Handbook description
This subject teaches the fundamentals of lending practice and the provision of other financial services which equips students for entry into banking and other financial institutions that provide financial services. Areas covered include: managing loans and the loan portfolio; the importance of the loan policy; commercial lending; credit analysis; agricultural finance; consumer credit and consumer credit regulation; the changing nature of financial services delivery; project finance; trade finance; international banking; merchant banking; funds management; insurance; and e-commerce.
Subject objectives/outcomes
On successful completion of this subject, students should be able to:
- gain appreciation of the range of lending products and delivery of services provided by financial institution
- evaluate the quality and the delivery of financial services products provided by financial institutions
- develop awareness and the skills necessary to the practice of lending and the provision of a broad range of services
- appreciate the ethical issues in the provision of financial services and the impact of legislations on the provision of products, services and advice.
Contribution to graduate profile
This subject provides knowledge of the products and services in financial institutions. It forms an integral part of the banking major, contributing to the objectives of the major by focusing on the development of vocationally relevant understandings of products and services provided by financial intermediation and their use in a modern economy.
Teaching and learning strategies
The course will be taught using a combination of lectures and tutorials. Both printed and electronic learning materials and resources will be available to support flexible learning. Lending products and the financial services promoted by Australian financial institutions will be evaluated and analysed in tutorial discussion.
Content
- Structure of the credit organisation
- Lending function, loan policy and the loan portfolio
- Commercial lending: credit analysis, loan covenants and consumer credit
- Project finance: structure, risk analysis, project analysis
- Trade finance: facilities, assistance for export and import, documentation
- Syndicated loans: facilities in the Euromarkets and domestic markets, complex financial instruments
- International banking: organisational forms, foreign exchange risk, merchant banking
- Financial products and services: funds management, insurance products, trustee and custodial services
- Regulation, e-commerce, internet banking and broking.
Assessment
Assessment item 1: Case Study (Group)
| Objective(s): | 1-4 |
| Weighting: | 25% |
| Task: | This will assess students understanding of how the theories and concepts associated with managing a financial institution and applying risk management. It assures objectives 1-4. |
Assessment item 2: Mid-Semester Examination (Individual)
| Objective(s): | 1, 2 |
| Weighting: | 25% |
| Task: | The mid semester examination will require the students to consider the impact of the international finance environment on a multinational firm's foreign exchange risk management It assures objectives 1 and 2. |
Assessment item 3: Final Examination (Individual)
| Objective(s): | 1-4 |
| Weighting: | 50% |
| Task: | The final examination will test students' understanding of the theories, risk management and issues in financial services. It tests their proficiency in using the financial management techniques and global financial policies for multinational corporations. It assures objectives 1-4. |
Required text(s)
Sathye M, Bartle J, Vincent M, Boffey R, Credit Analysis and Lending Management, Wiley, 2003
Recommended text(s)
Bruce, McKern, Pollard, Skully, Handbook of Australian Corporate Finance, 5th edn, Butterworths, 1997
Hogan W, Avram K, Brown C, Degabriele, R., Ralston D, Skully M, Hempel G, Simonson D, Management of Financial Institutions, Wiley, 2004
Indicative references
Koch, Timothy S. (2006), Bank Management, 6th Edition, Thomson
Rose, Peter S. (2002), Commercial Bank Management, McGraw-Hill
Weaver and Kinsley (2001), Banking and Lending Practice, 4th Edition, Law Book Company
Carew E., Fast Money 4, Allen & Unwin, 1997
Shanahan K, Australian Dictionary of Banking & Finance, LBC, 1997
Saunders A, Credit Risk Measurement, 2nd Edition, Wiley Finance, 2002
Altman E., Corporate Financial Distress & Bankruptcy, 2nd Edition, Wiley Frontier in Finance
Finnerty J.D., Project Financing, Wiley Frontier in Finance
Everett & McCracken, Financial Institutions Law, 6th edition, Law Book Company 2
Faculty of Business (2006), Guide to Writing Assignments (available through UTSOnline or at www.business.uts.edu.au/resources/guide.html)
Australian websites
www.apra.gov.auwww.rba.gov.au
www.rba.gov.au/site/si_ind.html
www.treasury.gov.au
www.asx.com.au
www.afma.com.au
www.sfe.com.au
www.investor.fairfax.com.au
International websites
www.imf.orgwww.bis.org
www.centralbanking.co.uk/links.html
www.cnnfn.com
www.bloomberg.com
Other resources
Lecture overheads
These are available at a printing cost recovery price. City students may purchase their copy from the Haymarket UTS Union Shop (Building 5D).
Note that the subject slides are not a substitute for the recommended textbook
