Certified Bank Performance Specialist
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Certified Bank Performance Specialist Course
Introduction:
The Certified Bank Performance Specialist program is specifically designed for banking professionals who are dedicated to enhancing their expertise in measuring and controlling bank performance. This highly interactive course is aimed at improving the financial acumen of individuals who strive to generate exceptional shareholder returns.
In the fiercely competitive banking industry, there is mounting pressure on bank management to elevate their performance. The recent financial crisis, accompanied by bailouts of financial institutions and market volatility, has renewed the focus on how banks assess their own performance and that of their industry peers in terms of both performance and risk. Additionally, the risks faced by banks are constantly evolving, necessitating effective management to safeguard shareholders from adverse events.
This program tackles these critical issues by engaging managers at all levels in contributing to successful performance. It encompasses both technical and strategic aspects, aiming to sensitize managers to identify opportunities while carefully assessing the associated risks that arise in pursuit of these opportunities. The program adopts a highly interactive and case study-driven approach to ensure practical application of the concepts and principles.
By participating in this program, banking professionals will gain comprehensive insights and tools to navigate the intricacies of bank performance measurement and control. They will be equipped to make informed decisions, capitalize on opportunities, and mitigate risks effectively. Ultimately, this program empowers participants to drive superior performance and deliver enhanced value for shareholders.
Course Objectives:
By the end of this Certified Bank performance specialist training course, you will be able to understand:
- Practical understanding and knowledge of how to read and interpret bank financial statements
- Developing a set of performance metrics relevant to banks
- Understanding the close relationship between risk and return in banking
- Appreciating the importance of bank strategic choices in relation to risk
- Developing greater cost awareness in connection with banking operations and services
Who Should Attend?
The course is suitable for a variety of managers at midlevel across the organization, including a broad range of middle to senior management involved either in operational or accounting/reporting activities within a bank, including risk management, internal control, and corporate planning. It is also appropriate for staff engaged in revenue-generating activities, whether lending, trading, or other transactions.
Course Outlines:
Introduction
- Overview of the financial industry – types of banks and business lines
- The financial crisis and systemic risk
- Industry benchmarking
Bank Financial Statements
- Structure of the income statement, with emphasis on:
- Interest and trading income
- Profit margins, provisions and cost categories (overheads)
- Structure of the balance sheet, with emphasis on:
- Loan portfolio and loss provisioning
- Asset classes and their valuation
- Liability composition
- Shareholders’ equity
- Assets-Liability matching; the concept of gapping
Case study: Matching financial statements to type of bank
- The objective is to consider several sets of financial statement structures and to match them to different banks based on the type of activity.
Developing a Set of Financial Ratios to Measure Performance
- Financial profitability analysis: key performance indicators
- Methodologies to measure/assess financial profitability
- Return on Equity
- Return on Risk Assets
Case study: Analysis of a Financial Statement
- Participants will work in groups to analyze a set of financial statements of a commercial bank, evaluating strategy, computing ratios and coming to conclusions as to financial condition
CAMEL Framework
- Capital adequacy -- Basel III and regulatory capital
- Asset quality and impairments
- Management analysis
- Earnings: Composition, sustainability and quality of earnings
- Liquidity requirements
Case study: Citigroup
- This case is a real-life discussion of the factors involved in anticipating the problems confronting a global financial institution which nearly led to its collapse. The perspective adopted by participants is one of an external bank analyst.
Regulatory Considerations
- Too big to fail – bail outs and the concentration of risk
- The nature of systemic risk
- Economic vs. Regulatory capital
Basel 3 Capital adequacy
- Liquidity risk
- Credit risk
- Probability distributions
- Expected and unexpected losses
- Value-at-risk
- Operational risk
- Fraud
- Market risk
Case Study: Risk-Adjusted Return on Capital
- This is an illustration of the calculations to determine the amount of capital required to cover credit risks
An Examination of Other Risks Relating To:
- Off-balance sheet operations
- Information technology
- Reputation
- Political and sovereign factors
Treasury Instruments
- Funding risk and strategies
- Asset and liability management -- gapping
- Interest rate risk and foreign exchange risk
- Hedging
- Inter-bank markets
- Over-the-counter trading
- Exchange-traded instruments
- Derivatives: Futures, swaps and options
Pricing Of Products and Services
- Pricing strategies/bundled pricing of services
- Economic cost of services
- Internal (transfer) pricing of services