BUSM 7021 Credit and Lending Decisions

Credit Points 10

Legacy Code 51166

Coordinator Vivienne Saverimuttu Opens in new window

Description Lending is one of the most important functions of any financial institution. If not managed properly, it can lead to credit quality problems, threatening the existence of the financial institution. This unit aims to provide an analysis of the various lending activities of financial institutions, emphasising the assessment of credit proposals and the management of credit risk.

School Business

Student Contribution Band HECS Band 4 10cp

Check your HECS Band contribution amount via the Fees page.

Level Postgraduate Coursework Level 7 subject

Restrictions Students must be enrolled in a postgraduate Business program.

Assumed Knowledge

51163 Financial Institutions and Markets and/or 51164 Finance / 200426 Corporate Finance.

Learning Outcomes

On successful completion of this subject, students should be able to:
  1. Apply constructive lending practices with due consideration of the interactive relationship between different banking activities, structures and risks;
  2. Apply knowledge of credit risk assessment principles and processes to conduct proficient credit risk assessment;
  3. Analyse lending information to detect different credit risk components and to make reasoned judgements appropriate to the circumstances;
  4. Integrate the spectrum of knowledge and information to generate constructive lending solutions.

Subject Content

The principles of lending and lending basics
Financial statements analysis
Credit scoring techniques
Credit risk analysis
Consumer lending
Real estate lending
Security, consumer credit legislation and legal issues
Corporate lending
Small business lending
International lending
Credit risk measurement and loan portfolio management

Assessment

The following table summarises the standard assessment tasks for this subject. Please note this is a guide only. Assessment tasks are regularly updated, where there is a difference your Learning Guide takes precedence.

Item Length Percent Threshold Individual/Group Task
Mid-Semester Examination 2 hours 30 N Individual
Group Assignment 3,000 words 20 N Group
Final Exam 2 hours 50 N Individual

Prescribed Texts

  • Sathhye, M. & Bartle, J. 2017. Credit Analysis & Lending Management, 4th Edition, Mirabel Publishing.

Teaching Periods

2022 Quarter 3

Parramatta City - Macquarie St

Evening

Subject Contact Vivienne Saverimuttu Opens in new window

Attendance Requirements 80% attendance rate is imposed in all core subjects’ due to the nature of class activities that are aligned with subject assessments.

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Sydney City

Day

Subject Contact Neelam Goela Opens in new window

Attendance Requirements 80% attendance rate is imposed in all core subjects’ due to the nature of class activities that are aligned with subject assessments.

View timetable Opens in new window