Strategic Bank Management (AFCP863)

The Global Financial Crisis of 2007-2008 highlighted the dependence of the real economy on the financial sector, and how subtle flaws in bank regulation can result in a failure of the financial system as a whole. One response to the crisis has been more restrictive banking regulation. The effectiveness of this regulation is yet to be seen, however it has made the task of generating returns for bank shareholders significantly more challenging, further compounded by a global economy that has still not fully recovered. This elective will allow students to navigate the new dynamics of the financial system and the objectives of the various stakeholders within that system, and to create management frameworks that work effectively within the complex regulatory constraints on financial firms. The unit investigates the inherent trade-offs in the design of incentives and risk-adjusted performance measures, and guides students to create bank business strategies that can be operationalised via credit concentration limits, delegated authorities etc. This elective also requires students to think critically about the evolution of the banking sector, and how traditional banks might need to adapt to counter the threats posed by disruptive new entrants into the marketplace.

Learning Outcomes:

  1. Study and assess the major themes driving banking industry trends and developments.
  2. Examine and critically evaluate the constraints and competing demands on banks’ balance sheets in the current environment.
  3. Critically examine strategic risk management processes and product design in a range of risk settings.
  4. Investigate and assess the banking landscape in the context of technical, social and ethical considerations.

Topics:

  1. Introduction
  2. Banking, Money and Economic Growth
  3. Bank Regulation
  4. Mandated Risk Management Tools
  5. Disruptive Innovation

Prerequisite Units:

Lecturers:

Unit Guides:

  • Strategic Bank Management - 2019. The link will provide a list of guides for this unit. If the desired term/location is not listed, please view the latest one available.

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