Macquarie University

Strategic Bank Management - AFCP863

The global financial crisis of 2007-08 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.