Intensive Bank Analysis

Duration: 3 Days ・ CPD Points: 24 ・ Level: Intermediate

This course is designed to provide participants with a structured approach to analyzing the credit risk of developed market, commercial and universal banks and the skills to make an independent assessment of the strengths and weaknesses of a bank.

Delivery Method Classroom
Location London
Dates 29-31 Jan 25
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Course Details

The overall goal of this interactive course is to provide participants with a structured approach to analyzing the credit risk of developed market commercial and universal banks and the skills to make an independent assessment of the strengths and weaknesses of a bank.

Key Learning Outcomes:

  • A structured approach to the analysis of banks, incorporating the CAMELS framework within the wider context of the operating environment and support
  • Identifying strong and weak performers using a detailed analysis of financial statements within the context of local and international accounting and business norms
  • Financial, qualitative and market early warning signals of credit risk and migration
  • Stress testing bank capital and ability to withstand credit, market and liquidity risk
  • Strategy and risk management capabilities within the context of the current and future economic climate and changing competitive, political and regulatory conditions, including Basel III capital and liquidity requirements.

Course Content

Analytic Overview

This section provides a structured framework of analysis including the use of market indicators to predict credit risk issues.

  • 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
Operating Environment

This section focuses on the impact of external factors on the banking systems, including the economic environment, competitive environment, plus regulatory and supervisory pressures.

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
Regulation and supervision
  • Changing roles of the regulator and supervisor
  • Key regulations: Purpose and implementation
  • Quality of regulation
Financial Fundamentals

This section covers how to measure and evaluate bank performance, distinguish strong and weak performance and appreciate the limitations of financial disclosure.

Statement logic
  • Relating business mix to financial statements
  • Accounting policies and disclosure: IFRS and local GAAP; fair valuation – securities and derivatives
Business risk
  • Loan portfolio analysis: Uncovering the risk profile; key differences between types of banks
  • Loan quality: Impaired loans and reserve adequacy, IFRS9 accounting vs US GAAP
  • Trading risk: Assessing securities and derivatives portfolios, use of value at risk (VaR) models and stress testing
  • Investment risk: Valuation and accounting policies
  • Market risk for the banking book
Performance risk - earnings
  • Balancing the risk/return profile: Strategy and risk appetite
  • Income stability and diversity: Earnings at risk
  • Control of expenses: Targets and peer comparisons
Financial Fundamentals (continued)
Financial risk – funding and liquidity
  • 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
Financial risk – solvency
  • Capital: Size, quality and adequacy of 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 
  • Leverage ratios: Benchmarks and challenges
  • Capital adequacy: Measuring size, quality and adequacy of 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

Early warning signals 

This section considers a variety of early warning signals which may indicate financial stress at a bank.

  • Financial and non-financial indicators of distress

Who Should Attend?

This is an intermediate level course for credit risk management, fixed income, origination and regulatory professionals who have an existing foundation level of financial analysis knowledge. The two-day Fundamentals of Bank Financial Statement Analysis is designed as a preparation for those with limited accounting and banking experience.

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Course Highlights

Real Case Studies

Real company case studies to test your newly learnt skills

CPD Recognized

This course is Continuous Professional Development (CPD) recognized

Highly Interactive

Highly interactive with small group size and industry expert trainers

Frequently Asked Questions

Currently, course can be taken either in an in-person setting or in a live online setting.

Our virtual live online courses are designed to keep the same levels of engagement and networking as our in-person courses. You will attend the course virtually on a set date, at a set time.

What time zones do the courses run in?
Currently, we run live online training across London, New York and Singapore time zones.

How are the courses delivered?
We deliver virtual training via Zoom.

What are the start times?
The courses will run during scheduled class times, and vary per course.

Reclaiming VAT
Most delegates who attend our courses in the UK are able to claim back their VAT once it has been paid. The below information details why we need to charge VAT and how you can claim it back.

Why does Fitch Learning charge VAT?
The EU VAT Directive (Council Directive 2006/112/EC) article 53 says that for the right of entry to cultural, artistic, sporting, scientific, educational, entertainment or similar events in exchange for a ticket or payment, the place of supply is where the event physically takes place. Since, the event is held in the UK, the place of supply is the UK and therefore UK VAT has to be charged.

How can you claim back the VAT you paid for a course?
The most efficient way to claim back VAT is directly through the UK’s HM Revenue and Customs (HMRC) by completing the required forms and sending back to HMRC.

Please follow the links below for further details;

EU businesses
Non-EU businesses
To claim back VAT or if you have any questions please contact HMRC;

Telephone - 0044 (0) 3000 537 381

Email Overseas Repayment Unit - enq.oru.ni@hmrc.gsi.gov.uk

On the Fitch Learning website you will find learning paths which will explain the courses available at different levels within a topic area. We would always prefer to speak with you to discuss which course is most appropriate rather than run the risk of you signing up for an inappropriate course. If you are unsure, please contact the Public Courses team:

Phone: +44 20 7496 8600
Email: enquiry@fitchlearning.com

All of our instructors are industry practitioners turned trainers. Their training style is case study based and interactive. They will coach, challenge and inform participants to ensure immediate and practical real-life application from the courses. To discuss our instructors further please email enquiry@fitchlearning.com

Class sizes are dependent on the course, but are small enough to permit active interaction and participation.

Q. Am I able to gain CPD/CE/CPE credits for my course?
A. We award continuing professional development credits for the following:

Global
CFA Institute
The CPD Certificate Service
UK
CFA Society
The CPD Certificate Service

Q. What do I need to do to receive my credits?
A. Please email enquiry@fitchlearning.com to request a certificate. Fitch Learning will send you a certificate stating how many points you are eligible for.

Q. How many credits will I receive?
A. We award 8 credits (7 for the CFA) for each day of training you attend.

You will be contacted by email within 2 working days of processing your registration to confirm your place on the course.

In order to optimise class time we ask participants to read some background information on the main illustration case(s) prior to attending the class. This also helps to ensure that all are able to participate in case discussions. In some cases additional background reading is provided. The length of pre-course reading is advised to participants in advance and typically ranges from 2-3 hours.

We try to send out the pre-course reading by email one week before the start of the course. There may be a delay in sending this out due either to late registrations or to the fact that the case study needs to incorporate recently-published financial information.

Q. If I am unable to attend can I send a substitute?
A. Absolutely and it is completely free of charge. We do however ask that we have at least 2 working days’ notice of this change before the course start date. Please email enquiry@fitchlearning.com with full contact details of the substitute and who they are replacing.

Q. Can I transfer my booked course to another date?
A. Yes you can. If you email us your request to transfer to the next available course date and give us more than 30 days’ notice, there will be no charge. If you notify us within 30 days of the course start date, there will be an additional payment of 25% of the course fee, provided the original course fee has been paid in full.
A transfer can only be made onto a course taking place within a period of 6 months of the original course date and only one transfer can be made in respect of any booking.

Q. Can I cancel my course booking?
A. Yes. If you email us with your request more than 30 days before the course start date, there will be no charge. If you notify us within 30 days of the course start date you are liable for the full course fees.

Q. What happens if I do not attend my course?
A. If you do not attend your course and you do not give us any prior notice you are liable for the full course fee and no refunds can be given.

Notice contact details:
Email: enquiry@fitchlearning.com

We can develop a customized training solution to meet your learners' needs - at all levels in your organization. Please email enquiry@fitchlearning.com for more information.

Please get in touch with us via email at enquiry@fitchlearning.com to request more information on running one of our courses in-house for larger groups.

Discount offers cannot be used in conjunction with each other or any other offer nor applied retrospectively to anyone already registered for any Fitch Learning course.

To speak to a member of our team, please get in touch via the below:
Phone: +44 20 7496 8600
Email: enquiry@fitchlearning.com

Q. How do I make a complaint?
A. Anyone who wishes to make a complaint may do so in writing. Complaints need not be made to the actual service which is the subject of the complaint. In the first instance complaints should be sent to Grace Heighington, Head of Public Courses.

Q. Where do I send my complaint?

A. Complaints can be submitted using the following options:
Email: enquiry@fitchlearning.com
Post: Grace Heighington, Fitch Learning, The Corn Exchange, 55 Mark Lane, London, EC3R 7NE
Wherever possible and appropriate, staff are requested to elicit from the complainant the nature of the complaint, as well as the actions the complainant feels are necessary to resolve the complaint.

Complaints Policy and Procedure
Q. What are the stages involved?

A. There are two main stages to our complaints procedure:

Stage 1 - We always try to resolve issues quickly. From the moment we receive your complaint, we must get back to you within three working days. At the very least we must acknowledge the problem in writing and give you the name of the person dealing with the complaint. We must give you a full reply within ten working days if possible, or keep you fully informed of the progress and reasons for delay.

Stage 2 - If you are not happy with the full response at Stage 1, please contact us again. One of the Managing Directors will then review the issue. You can expect our acknowledgement within three working days of us receiving your complaint. We will also explain how long the director's review will take.


Make an Enquiry

To find out more about the course get in touch with the
Fitch Learning team on +44 20 7496 8600 or fill out the form below.



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