This course covers the theory and practice of financial intermediation, broadly construed to include banks, savings institutions and investment/merchant banks. Topics will include the role of banking firms in a developed capital market, their impact on corporate financial decisions for non-banking firms, and the regulation of banks. The course includes a comprehensive analysis of the role of financial intermediaries in the development of fixed-income markets and provides an analysis of fixed income securities. Additional topics include models and techniques used for managing credit risk, interest rate risk and liquidity risk. These are applied to maturity matching, duration and immunization, loan sales, securitization, collateralized debt obligations (CDOs), and collateralized mortgage obligations (CMOs).

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Explain the role of banks in an economy and the global trends in banking and bank regulation
2. Describe how banks’ lending policies can influence corporate decision making
3. Identify and measure banking risks and implement credit risk management
4. Analyse debt markets and their role in liquidity management
5. Define interest rate risk and management
6. Discuss bank loan sales and securitization
7. Summarise the causes and consequences of bank failure and the global financial crises
8. Describe the latest developments in banking, including Fintech

Research-Led Teaching

My research encompasses the changing nature of financial intermediation post-GFC (i.e., rise of non-banks), as well as the social impact of banks and debt (e.g domestic violence, biodiversity) . These aspects will be incorporated throughout the course but will feature more prominently towards the end of the semester.

Field Trips

none

Additional Course Costs

none

Required Resources

Financial Markets and Institutions: A Risk Management Approach, 11th edition, by Anthony Saunders, Marcia Millon Cornett, McGraw Hill, 2023.

https://www.mheducation.com.au/financial-institutions-management-ise-9781266138225-aus-group

The book can be purchased from the on campus bookshop, with a small number of copies also available for 2 hour loan in the reserve loan section of the Chifley Library. An E-book version of the textbook is also available from ANU library website. Older editions are also perfectly fine.

Recommended Resources

Whether you are on campus or studying online, there are a variety of online platforms you will use to participate in your study program. These could include videos for lectures and other instruction, two-way video conferencing for interactive learning, email and other messaging tools for communication, interactive web apps for formative and collaborative activities, print and/or photo/scan for handwritten work and drawings, and home-based assessment.

ANU outlines recommended student system requirements to ensure you are able to participate fully in your learning. Other information is also available about the various Learning Platforms you may use.

Staff Feedback

Students will be given feedback in the following forms in this course:

• written comments
• verbal comments
• feedback to whole class, groups, individuals, focus group etc

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Roles and operations of banks and bank financial statementsCase study: Silicon Valley Bank
2	Interest Rates and Interest Rate Risk
3	Debt Markets and Liquidity riskCase study: Continental Illinois	In tutorial group presentations
4	Debt Markets and Liquidity riskCase study: Northern Rock	In tutorial group presentations
5	Interest Rates and Interest Rate RiskLending Policies and Credit RiskCase study: Washington Mutual	In tutorial group presentations
6	Lending Policies and Credit RiskRegulation: Micro-prudential	Class hand out
7	Mid-semester Exam	Mid-semester Exam
8	Regulation: Macroprudential
9	Securitization
10	SecuritizationCase study: Lehman Brothers
11	Bank failures and crisesCase study: Subprime Crisis + Global Financial Crisis
12	Social impact and future of bankingR1 - the rise of shadow bankingR2 - debt and domestic violenceR3 - financial literacy and domestic violenceR4 - zombie lending and biodiversity

Tutorial Registration

Tutorials will take place on campus. ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Tutorial registration will usually be available two weeks before the beginning of the semester and will close at the end of week 1. Find out more on the Timetable webpage.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
In tutorial group presentation - oral component	10 %	09/03/2026	27/03/2026	1, 2, 3, 4, 5, 6, 7, 8, 9
Class Hand Out	10 %	02/04/2026	24/04/2026	1, 2, 3, 4, 5, 6, 7, 8, 9
Mid-semester exam	40 %	24/04/2026	08/05/2026	1, 2, 3, 4, 5, 6, 7, 8, 9
Final exam	40 %	04/06/2026	02/07/2026	1, 2, 3, 4, 5, 6, 7, 8, 9

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines , which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Extenuating Circumstances Application
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Skills website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Canvas’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Course content delivery will take the form of weekly lectures (recorded and available via echo360 on Wattle) and tutorials. All teaching is on-campus and face-to-face.

Examination(s)

Centrally scheduled examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information.

Assessment Task 1

In tutorial group presentation - oral component

Presentations will be made in groups during tutorials. The task will be to read a recent news article(s) or case study (I will circulate the articles/cases prior to presentations) and present the information to the class as if you were presenting it to the board of directors of a bank or board of directors at a regulatory authority. You need explain: (1) how this news is relevant to the bank/regulatory authority; (2) what the implications are for the bank/regulatory authority; and (3) recommendations to the board about whether any action is necessary in response to this news, and if action is required, what type of action you recommend. 

• Each tutorial class will be split into 9 even groups
• Tutorial presentations will run in week 3-5 (3 each week)
• The presentation for each group will last 17 minutes (15 mins presentation and 2 mins for questions from the class).
• How the workload is shared is up to each group.
• Each group's presentation will be marked on (1) how well they analyse the news article and its relevance; (2) the quality of their delivery; and (3) their ability to engage the class in discussion.

Each group must hand in (to their tutor) a copy of their presentation slides. The group presentation will be worth 10% of your overall grade.

Assessment Task 2

Class Hand Out

Based on the group presentation, each group will submit a hard and soft copy 1-page summary (to their tutor) of the key takeaway points. The summary will be assessed on its correctness and quality of writing. All summaries will be posted on Canvas after week 6 as a "Class Hand Out". The group Class Hand Out is due by 5pm on Thursday of week 6 (2026-04-02) and will be worth 10% of your overall grade.

Assessment Task 3

Mid-semester exam

A mid-semester (open book) exam will take place in week 7. The exam will be held face-to-face on campus. The exam will cover the material in weeks 1-6 of the semester and be worth 40% of your overall grade. Exam questions will be all long problem solving and short essay style questions. Details of the assessment and marking criteria will be provided in the exam.

Assessment Task 4

Final exam

A final (open book) exam will take place during the examination period. The exam will be held face-to-face on campus. The exam will be comprehensive and cover all material in the semester (weeks 1-12) and be worth 40% of your overall grade. Exam questions will be all long problem solving and short essay style questions. Details of the assessment and marking criteria will be provided in the exam.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material. Any use of artificial intelligence must be properly referenced. Failure to properly cite use of Generative AI will be considered a breach of academic integrity.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Accessibility for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents all ANU students