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BX3135 - Credit and Lending Decisions

Credit points: 3
Year: 2020
Student Contribution Band: Band 3
Administered by: College of Business, Law & Governance

In this subject students will address concerns regarding how banks process credit and lending decisions. Topics include the basic building blocks of lending, examining the role of the intermediary and how banks overcome information Asymmetry - through transaction and relationship lending. It emphasises financial statement analysis of borrowers, both business and personal. The credit evaluation process is discussed and the credit scoring system explained. The different lending products of a bank and the purpose of each lending product are examined. Lending to small and medium sized enterprises (SMEs) as a driver of sustainable economic growth in the Asian Pacific region is highlighted.

Learning Outcomes

  • assess how banks make credit and lending decisions, including critical analysis of financial statements and the operation of credit scoring systems;
  • appraise the influence of interest rates on economic growth and how monetary policy can influence bank lending;
  • synthesise the macroeconomic role of lending to small and medium sized enterprises (SMEs) and economic development;
  • develop a SME loan proposal;
  • evaluate the differences between business lending and personal lending practices.

Subject Assessment

  • end of semester exam (50%)
  • individual report (20%)
  • group assignment (30%).
Prerequisites: BU1002 OR BU1902 AND BU1003 OR BU1903

Availabilities

External, Study Period 1
Census Date 26-Mar-2020
Workload expectations:

The student workload for this 3 credit point subject is approximately 130 hours.

  • 0 hours
  • assessment and self-directed study
Method of Delivery: WWW - LearnJCU

JCU Singapore, Internal, Study Period 51
Census Date 09-Apr-2020
Workload expectations:

The student workload for this 3 credit point subject is approximately 130 hours.

  • 38 hours - Combined Lectures; Tutorials/Workshops; Lecturer directed activities.
  • assessment and self-directed study

JCU Singapore, Internal, Study Period 53
Census Date 03-Dec-2020
Workload expectations:

The student workload for this 3 credit point subject is approximately 130 hours.

  • 38 hours - Combined Lectures; Tutorials/Workshops; Lecturer directed activities.
  • assessment and self-directed study

Note: Minor variations might occur due to the continuous Subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.