Program Information
This interactive workshop provides participants with an understanding of the key performance indicators and main balance sheet and income statement accounts for banks. This course is oriented around interpreting financial results of financial institutions so candidates can gain a solid understanding of financial statements. It provides the participants optimal blend of accounting instructions needed to prepare them to be well-rounded financial and banking professionals.
Program Objectives
By the end of this program, the participants will have a thorough understanding of:
- The components of bank financial statements and key ratios used in bank analysis
- The risks in the different business lines and products offered by financial institutions and how they are reflected in the financial statements
- The impact of differing accounting standards and policies on the financial statements
- The CAMELS framework (capital, asset quality, management, earnings, liquidity and sensitivity to market risk) and key ratios to make a preliminary assessment of the performance and financial health of a bank.
Program Attendees
This program has been designed for the Bank personnel who are responsible for reviewing financial statements for the purpose of assisting in making lending decisions, monitoring the ongoing health of the business, or conducting the initial financial analysis.
Program Outline
- Main activities and products of Financial Institutions
- Credit Products, Trading & Investing, Services & Funding
- Balance Sheet and Income Statement
- Major Balance Sheet and Income Statement Components
- Credit Risk Types, On and Off-Balance Sheet
- Loan Quality, Portfolio Analysis & Accounting for Problem Impaired Loans
- Reserve Adequacy: Provisioning Levels, Allowance, Charge Offs and recoveries
- Securities and Derivatives Portfolios
- Risk in Securities and Derivatives Portfolios
- Types of income and expense; Net interest margin, fees and commissions
- Ratios to measure quality and diversity of income, cost control & provision burden
- Funding sources, on and off-balance sheet treatment for securitization
- Deposits, commercial paper, repos, inter-bank lines, senior and subordinated bonds, common and preferred stock
- The volatility of liabilities, quality and liquidity of assets, contingency funding needs
- Types of capital, reported book equity, adjusted common equity and hybrid capital
- Earnings, asset valuation & capital raising
Program Methodology
Using a mixture of structured lectures, delegate discussions and practical case studies, attendees will improve their skills by direct learning, through group discussions and by sharing their own experiences as well as those of the expert trainer. The trainer will encourage active debate at all times to ensure that delegates are able to gain the maximum benefit from the course. The case studies will be tailored to match the mix of ability and experience of the delegates attending the course ensuring that the examples all have direct and actual relevance to the group’s individual working environments.