Bank Financial Mgt Week 1 Lecture Slides - Full Size

Bank Financial Mgt Week 1 Lecture Slides - Full Size -...

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BUSINESS SCHOOL FINC3018 BANK FINANCIAL MANAGEMENT Semester 2, 2011 Unit Coordinator Paul Martin
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Objectives of Today’s Session An overview of the Course Appreciate why banks are special Examine the role of banks and FIs’ and the resultant risks that this role entails - Depository (Commercial) Banks - Investment Banking - Primary Market Activity - Secondary Market Activity - Tertiary Market Activity Examine the structure of the financial system in Australia and the pressures for change Examine the impact of these changes on banks and the regulation of banks
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Approach to the Course Chapters from the Text for each Session Supplementary reading - Articles or industry based policy material - Focus is on the latest developments in the industry Includes a focus on the practical application of the theories and techniques Tutorials will examine aspects of theory and its practical application - In particular the application of quantitative techniques to the measurement and management of bank financial risks
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Course Administration The individual assignment is due in Week 10 in the Drop-box on Level 1 of the Economics and Business Building on 5 October 2011 The mid semester exam will be held during the week commencing 12 September 2011, i.e. Week 8 and will cover the material to Week 6 Resources will be available on Blackboard Course Announcements will also be available on Blackboard
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Overview of the Course The nature of risk and its significance to the management of banks. The risk management process - Identifying financial risk - Measuring financial risk - Managing financial risk
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Overview of the Course (Cont.) In examining bank risk management the course will examine - The types of risks encountered by banks - Market, credit, liquidity, operational etc - The techniques used to quantify the financial consequences of these risks for banks - A focus on risk modelling - The management of these risks - A focus on modern risk transfer and mitigation techniques - Hedging using derivatives - Securitisation - The associated regulatory framework - With a focus on the Basel 2 and the new Basel 3 Capital Accords
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As we will see later this session the primary role of financial institutions (FI’s) is to intermediate and manage risk These risks arise from the financing role that FI’s play in the economy and extend to credit, market, liquidity and their consequent operational (processes, systems and people) exposures The problem is: The nature of these risks continue to change and new risks arise (such as operational risk) such that for example: Operational risk is now considered by many managers to be more significant than either market or credit risk. (British Bankers Association/Coopers &
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This note was uploaded on 11/05/2011 for the course FINC 3018 taught by Professor Paulmartin during the Two '11 term at University of Sydney.

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Bank Financial Mgt Week 1 Lecture Slides - Full Size -...

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