Course description
Advanced Bank Analysis
The objective of this case study based course is to drill down into the financial statements of global investment and trading banks in order to identify and quantify the risks of more complex business lines.
Live Online Training
Since 2003, Fitch Learning’s industry experts have been delivering world-renowned virtual training programs to learners across the globe. Benefits include:
- World-class video conferencing technology
- Fully interactive, engage and network with peers using break out rooms, quizzes and polls
- On-hand technical support team throughout
- Attend from anywhere, across four time zones
- Save time and costs on travel
Suitability - Who should attend?
Experienced analysts, regulators, risk and fixed income professionals with a good understanding of the analysis of financial institutions.This course is a follow-on from our intermediary level workshops: Intensive Bank Analysis, Emerging Market Bank Analysis and Non-Bank Financial Institutions.
Outcome / Qualification etc.
Credits: 16 CPD pts.
Key Learning Outcomes:
- Recognize how and the extent to which more complex banking businesses are reflected in the balance sheet and how the risk profile is evidenced in the income statement
- Identify and quantify exposures where all or part of the exposure is off-balance sheet, including derivatives and structured finance vehicles
- Understand how the new accounting and reporting conventions under both US GAAP and IFRS impact differently the financial statements of global investment and trading banks
- Use the information provided to evaluate the bank's risk profile and appetite
- Recognize best practice in financial reporting, including new GAAP / IFRS requirements and Basel II Pillar III disclosures
Training Course Content
Day One
Analytic Overview
The goal of this section is to recognize when it is necessary to go beyond traditional ratio analysis for a bank and focus on the risk profile of more complex activities.
Analytic issues
- Complex banking activities: business models and risk profiles
- Analytic challenges – ratio analysis
Credit Risk
The goal of this section is to review the risk profile, accounting and financial analysis of more complex lending exposures, in particular commitments, loans at fair value and credit derivatives.
Product risk overview
- Loan and loan commitments; contingent liabilities
Financial statement analysis and accounting
- Fair valuation and cost plus impairment techniques; banks who use a mix of fair value and cost accounting
- Using the financial statements to assess credit risk: insights and limitations of traditional impaired loans and provisioning ratios
- Using Pillar III disclosures to analyse risk
Day Two
Market Risk
The goal of this section is to review the risk profile, accounting and financial analysis of securities and derivatives exposures and the use of models and stress tests to evaluate them.
Product risk overview
- Long and short positions in equities, bonds and commodities
- Impact of derivatives on banking book credit risk: credit derivatives used for hedging
- Quantifying counterparty risk: current and potential future exposure (PFE) calculations
- Relating market risks to the success of the business model: key sensitivities to different markets
Financial statement analysis and accounting
- Treatments of trading and hedging transactions under FAS 133 and IAS 39
- Using the financial statements to assess trading and market risk
- Reliance on, and volatility of, trading profits
- Measuring VaR levels: benchmarking performance against peers
- Other disclosures about market risk: back testing, stress testing, expected shortfall
- Assessing derivatives counterparty exposure:
- how the risk should be measured
- disclosures to expect and how to use them
Structured Finance Transactions
- Types of transaction: securitisation, other structured credit products, other off-balance sheet vehicles e.g. SIVs, ABCP
- When and where structured finance assets and liabilities will come on-balance sheet
Financial Risk
The goal of this section is to review the risk profile, accounting and financial analysis of more complex funding sources, in particular repos, stock lending, client balances and different sources of capital. The section will include an update on Basel III capital and liquidity regulations.
Product risk overview
- Financing transactions: stock borrowing and lending, repos and reverse repos, repo 105
- Re-hypothecation of client balances - liquidity challenges
- Relating transaction flows to liquidity
- Legal structure: implications of double leverage
- Capital: impact of key accounting issues e.g. deferred tax, unrealised gains, and losses etc
- Acquisition accounting: impact of negative goodwill on earnings and capital
Financial statement analysis and accounting
- Using the balance sheet to assess liquidity risk and capital adequacy
- Off-balance sheet exposures and their implications; window dressing
- Liquidity regulations: impact on disclosure
- Capital adequacy: core and hybrid capital in Basel II and Basel III
- Ratios: what they mean and how they should be used.
Why choose Fitch Learning
9 in 10 would recommend us to a colleague
Over 1,300 clients worldwide
CPD recognized
Continuing Studies
Completion of this course can lead into: Risk Management in Banks and the Capital and the Regulatory Requirements and Early Warning Signals in Banks courses.
Get Inspired! Watch the Video
About provider
Fitch Learning
Live Online Training Since 2003, Fitch Learning’s industry experts have been delivering world-renowned virtual training programs to learners across the globe. Benefits include: World-class video conferencing technology Fully interactive, engage and network with peers using break out rooms, quizzes and...
Request info
Contact info
Fitch Learning
Reviews
Average rating 5
Based on 1 reviews.
Find out more about this Advanced Bank Analysis course - simply fill out your details:
 |
Read the course |
|
 |
Fill in your details and Request information |
|
 |
Receive all the info you need |