NAME OF THE COURSE |
Certified Master in Bank Operations & Financial Analysis |
CERTIFICATION |
Certified Master in Bank Operations & Financial Analyst |
COURSE OVERVIEW |
The overall goal of this certificate program is to give participants exposure to Bank Operations, and financial statements and enable them to make an independent assessment of the strengths and weaknesses of a bank. The course provides participants with frameworks and tools required to make an independent credit analysis of a bank. The Banking & Financial Analysis Master class program is an 18-hour skill-building course covering accounting, financial modeling, valuation, and equity research. Through a rigorous project-based methodology, you will acquire a powerful toolkit that will help you build a career across a wide variety of roles in investment banking, corporate finance, and private equity. |
TRAINING DURATION |
Total Training Hours : 22 Hours |
Training Duration : 1 Week |
Total Training Days : 4-5 Working Days |
TRAINING SCHEDULE |
Weekdays (Sunday to Thursday) |
Regular Sessions : 4 – 6 Hrs Per day (9am to 2pm or 3.00pm to 9.00 pm) |
Food & refreshments Included |
Weekends (Friday & Saturday) |
Fast Track Sessions: 8 Hours per day (9am to 5pm) |
Food & refreshments Included |
CERTIFICATION |
Globally recognized certificate from “Kings Global Career Academy” |
TEST |
No |
LEARNING AIDS |
Yes |
COURSE MATERIAL |
Hard & Soft Copies of Study Material |
LANGUAGE OF INSTRUCTION |
English |
INSTRUCTOR HELPLINE |
Yes |
1. Email |
2. Social Media (For Emergency requirements) |
REGISTRATION REQUIREMENTS |
1. Passport Copy |
2. Curriculum Vitae |
3. Passport size photographs |
4. Course Fee |
MODE OF PAYMENT |
Cash / Cheque / Credit Card / Bank Transfer. |
ELIGIBILITY CRITERIA |
This programme is suited for: |
•Central Bank Officers |
•Commercial bank Officers |
•Cooperative Bank Officers |
•FII employees |
•Retail business owners, e-commerce Project Managers, Marketing Managers, Digital Market Executives and Entrepreneurs. |
•Corporations that want to embrace e-commerce in their businesses |
•Individuals or Enterprises who want to explore alternative channels for sales and distribution |
COURSE BENEFITS |
•Understand the risks in the different business lines and products offered by financial institutions and how they are reflected in the financial statements |
•Analyse the components of bank financial statements and key ratios used in bank analysis |
•Understand the impact of differing accounting standards and policies (e.g. provisioning, asset valuation, securitization, etc.) on the financial statements |
•Use the CAMELS framework (capital, asset quality, management, earnings, liquidity and sensitivity to market risk) and related key ratios to make a preliminary assessment of the performance and financial health of a bank |
•Use a structured approach to the analysis of banks, incorporating the CAMELS elements, but in the context of business, financial and performance risk within the wider context of the operating environment |
•Identify strong and weak performers using a detailed analysis of financial statements within the context of local and international accounting and business norms |
•Identify financial, qualitative and market early warning signals of credit risk and migration |
•Stress test bank capital and ability to withstand credit, market and liquidity risk |
•Evaluate strategy and risk management capabilities within the context of the current environment and future economic climate, focusing on implications of COVID-19 and changing competitive, political and regulatory conditions, including Basel III capital and liquidity requirements |
COURSE CONTENTS |
Analytic Overview |
A structured approach to analysis |
•Defining CAMELS within the context of overall bank analysis |
Types of financial institutions |
•Key activities and products of financial institutions: Credit products, trading and investing, services and funding |
•Business models and key drivers of performance |
•Relating the business to the balance sheet and income statement: Differences between balance sheets of different types of bank and non-bank financial institutions |
•Major balance sheet and income statement components. |
•Level 1, 2, and 3 investment valuations |
BUSINESS RISK |
Asset Quality |
•Statement logic and accounting: Types of credit risk, on and off-balance sheets, accounting for problem-impaired loans. |
•Loan quality: Portfolio analysis, impaired/problem loans (past due, non-accrual, and restructured loans) |
•Reserve adequacy: Provisioning levels, allowances, charge-offs and recoveries, IFRS9, and impact of credit charges on bank performance |
Sensitivity to market risk |
•Statement logic and accounting: Valuation techniques for investments and derivatives – |
•Risk in the securities and derivatives portfolios |
•Value at risk and other measures of market risk: Advantages and disadvantages |
•Key drivers of earnings: Net interest margin, fees and commissions, trading |
•Ratios to measure quality and diversity of income, cost control, provision burden |
FINANCIAL RISK |
Liquidity and funding |
•Statement logic and accounting: Funding sources and refinancing risk |
•Funding stability and different sources: Deposits, commercial paper, repos, inter-bank lines, senior and subordinated bonds, common and preferred stock |
•Match funding and gap management |
•Key drivers of liquidity: Volatility of liabilities, quality, and liquidity of assets, and contingency funding needs |
•Alternative funding tools – securitization and covered bonds. |
•Local and international benchmarks for key liquidity and performance indicators |
Capital adequacy |
•Key drivers of capital: Earnings, asset valuation, and capital raising |
•International and local capital regulation: Basel I and II; Basel III |
•Risk weighted assets: Basel I vs. Basel II approach |
•Key ratios: Tier one and total capital ratios, leverage, core capital, and other measures |
•Local and international benchmarks for key performance indicators |
ANALYSIS |
Analytic Overview |
•Overview of the framework and tools of bank analysis: Operating environment, financial fundamentals, management, and support |
•Regulatory approach to risk analysis: CAMELS (capital, assets, management, earnings, liquidity, sensitivity to market risk) |
•Rating agency approaches: Issuer ratings, individual/financial strength and support ratings |
•Purpose and payback model: A structured approach to credit analysis |
•Key issues in credit exposures to banks: Exposure profile, seniority, safeguards, pricing |
•Market perspective on credit: Equity indicators, credit default swap and bond market indicators |
Macroeconomic and systemic issues |
•Impact of macro-economic variables on performance, especially with the global recession caused by the COVID-19 pandemic |
•Using key sovereign economic indicators as early warning signals to predict credit deterioration and heightened bank systemic risk |
•Macro prudential indicators of risk; credit growth, equity and property prices and FX |
•Competitive and structural issues of the banking system |
Early Warning Signals |
Financial and non-financial indicators of distress |
•Funding risk: Stability and variety of funding sources, contingency funding |
•Liquidity of assets: Identifying truly liquid assets, stable funding of illiquid assets |
•Liquidity of liabilities: Stability of deposit base, dependence on short-term wholesale funding, inter-bank market, key challenges of repo and CP funding |
•Gap management: Using the tenor and interest rate mismatch tables to better understand refinancing risk |
•Basel III liquidity guidelines: liquidity coverage ratio and stable funding ratio |
•Securitization vehicles: Accounting and credit implications |
•Capital: Size, quality, and adequacy of the capital base under Basel I, II, and III |
•Types of capital: Common equity vs. Additional Tier 1 and Tier 2 |
•Standardized and advanced approaches for credit, market, and operational risk |
•Capital adequacy: Measuring size, quality, and adequacy of the capital base; regulatory capital ratios and assessing regulatory capital adequacy |
•Internal capital adequacy assessment process (ICAAP) |
•Stress-testing capital for market and credit write-downs |
•Crisis management and the bail-in waterfall |