Key Benefits
- Develop practical frameworks to analyse banks and financial institutions
- Understand key regulatory, capital and liquidity dynamics influencing institutional resilience and creditworthiness
- Apply ratio analysis and peer benchmarking to form clearer, work-ready views on financial strength and risk
Do You Need to Attend This Course?
Commercial bankers
Analysts and brokers
Fixed income professionals
Central bankers
Credit officers
Lawyers
Regulators
Technical Content
Developing an analytical framework for analysis
Structured approach to analysis What are we trying to analyse? asset risk
counterparty risk
liquidity risk
investment risk
systemic risk
arbitrage opportunities
Definition of CAMELS as an analysis tool
Types of financial institutions: retail, investment banks, central banks, and commercial
banks, brokers, etc.
State-owned/part-owned banks and the level of future government support
Shareholder expectations
The impact of technology on the traditional banking system - FinTechs
Case study: reviewing the financial statements of a bank and assessing the risks
Business models and key performance drivers
Overview of the frameworks and tools of bank analysis: operating environment, financial fundamentals, management, support
Evaluating the FI revenue base - performance risk: Diversity of revenue base
Income stability: earnings at risk and earnings volatility
Control of expenses link to business strategy
role of technology
Margin spread
yield curve impact
Understanding the key financial ratios to analyse the revenue base
net interest margin
non-interest margin
cost/income ratio
Understanding financial structure and risks:
Loan portfolio analysis, loan quality (non-performing loans and coverage ratio)
Provisioning policy and charge-offs
Trading risk: securities and derivative portfolio
Investment risk: valuation and accounting policies
Management of risks
Financial risk: stability and variety of funding sources, contingency funding;
Funding stability and different sources deposits, commercial paper, repos, inter-bank lines, senior and subordinated bonds, common and preferred stock
Key drivers of liquidity
volatility of liabilities, quality and liquidity of assets, contingency funding needs
Liquidity ratios and stress testing
Case studies from developed and developing markets will be used to illustrate the topic areas
The rating agency framework for risk analysis Moodys, S&P, Fitch
Limitations of using credit ratings for counterparty risk
Migration risk
Solvency: leverage ratios
Capital adequacy – how much is enough?
Key ratios
Tier 1 and total capital ratios, leverage, core capital and other measures
Regulation and Supervision:
Key regulations
Basel III vs Basel IV
Standardised and advanced approaches for credit, market and operational risk
Contingent capital – CoCo’s
Support: solvency and liquidity problems, different types of support
Case studies from developed and developing markets will be used to illustrate the topic areas
Training Objectives
This one-day programme is designed to cover the areas of bank performance and evaluation necessary to understand the key risk areas of financial institutions. The programme will include short lecture sessions and case study examples from both developed and emerging markets.
What you will learn:
How to analyse the risk of commercial banks within an economic system
How to use the CAMEL analytical approach
How to analyse a bank's balance sheet and income statement
How to critically appraise the key performance indicators for banks
An understanding of the implications of capital adequacy concerns and standards
How to analyse a financial institution using ratio analysis and assess the relative financial condition of peers
Training Course Summary
The financial analysis of financial institutions covers the following areas:
The causes of sovereign risk and the impact on the commercial banking sector
An analytical framework for understanding commercial bank risks
The key performance drivers of commercial bank performance and models to analyse the risk factors
Your trainer
Course Trainer · 17 yrs experience
- Banking Training Courses
The trainer is the Managing Director of an international advisory company specialising in advisory and development services to the corporate, banking and finance industry, which he has owned for the past 17 years. He is an experienced corporate finance professional with practical experience and extensive knowledge of corporate and structured finance in global financial markets.
He is a Visiting Fellow in the M&A department and Programme Director at Executive Development, Sir John Cass Business School, London, a member of the Visiting Faculty at Fuqua Business School and has previously worked as an advisor to the Overseas Development Administration in the UK, as well as EU PHARE and TACIS programmes throughout Europe and Russia.
His main areas of expertise are corporate finance, M&A, corporate analysis and structured finance, asset securitisation, risk management, valuation, corporate credit processes, project finance, and treasury management. He currently works with many global corporate and banking clients in these areas and he also acts as an Expert Witness for London law firms in respect of his areas of expertise.
The list of global clients is extensive and covers both European, Middle East, African and Asian markets. In the corporate market, he works extensively with large corporate clients, private equity firms, private investors as well as public sector companies such as the NHS and major law firms. He provides advisory and development services to these organisations, either through the relevant departments or directly to the senior line management.
The trainer is also a well-known figure within the various training and development companies within Europe and regularly gives seminars throughout the world on his specialist topic areas and is a recognised expert in this area by many organisations.
He was previously the Managing Director of a subsidiary of Union Plc, a London merchant bank having previously worked with several high-profile global investment banks. He left Union Plc in 1996 to form his own international advisory Company.
The list of financial institutions and corporates with whom he has worked over recent years is extensive and includes: Allied Irish Bank, Alpha Bank, Bank of America Merrill Lynch, Bank of China, Barclays, Bayern LB, BT plc, Citibank, China Construction Bank, Credit Agricole, Credit Suisse, Danone, DECC, Deloitte, Dexia, Emirates Bank, E&Y, Euler Hermes, First Gulf Bank, FSA London, Garanti Bank, HBOS, Hohhot Bank Mongolia, HSBC, HVB, Iccrea Banca, Intesa SanPaolo, Central Bank of Ireland, KPMG, L’Oreal, Malta FSA, Mongolian Stock Exchange, Morgan Stanley, Mubabdala, NHS and many others.
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