Intensive Bank Analysis
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.
Select from the dropdown list to explore course locations, delivery methods, dates, and prices.
Skills You
Will Gain
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.
Who
Should Attend
This is an intermediate level course for credit risk management, fixed income, origination and regulatory professionals. The two-day Fundamentals of Bank Financial Statement Analysis is designed as a preparation for those with limited accounting and banking experience.
Course
Content
MODULE
Analytic Overview
This section provides a structured framework of analysis including the use of market indicators.
- Overview of the framework and tools of bank analysis: Operating environment, financial fundamentals, management, support
- Purpose and payback model: A structured approach to credit analysis
- Key issues in exposures to banks: Exposure profile, seniority, safeguards, pricing
- Rating agency approaches: Issuer ratings, individual/ financial strength and support ratings
- CAMELS (capital, assets, management, earnings, liquidity, sensitivity to market risk)
- Market perspective on credit: Equity indicators, credit default swap and bond market indicators
- Exercise: Understanding and applying the purpose payback model and demonstrate the typical borrowing needs and repayment capacity of a commercial bank.
Macroeconomic and sector issues
- This section focuses on the impact of external factors on the banking systems, including the economic environment, competitive environment plus regulatory and supervisory pressures.
- Impact of macro-economic variables on performance
- Bank systemic risk: Macro prudential indicators
- Macro prudential indicators of risk; credit growth, equity and property prices and FX
- Competitive and structural issues of the banking system
- Changing roles of the regulator and supervisor
- Key regulations: Purpose and implementation
- Quality of regulation
- Exercise: Considering the impact on bank profitability of the operating environment in various countries
- Exercise: Consider and quantify the impact on bank capital adequacy ratios of the implementation of Basel III
Sensitivity to Market Risk
The aim of this section is to introduce market risk and the concept of value at risk.
- Statement logic and accounting: valuation techniques for investments and derivatives – fair value through income statement, available for sale, held to maturity; SFAS 157 disclosures
- Risk in the securities and derivatives portfolios
- Value at risk and other measures of market risk: Advantages and disadvantages
- Illustration case study: Market risk disclosure
MODULE
Financial Fundamentals
Statement logic
This section covers how to measure and evaluate bank performance, distinguish strong and weak performance and appreciate the limitations of the figures.
- Relating business mix to financial statements
- Accounting policies and disclosure: IFRS and local GAAP; fair valuation – securities, derivatives, own debt
- Exercise: Understanding how the business model of a financial institution impacts its financial statements
- Loan portfolio analysis: Uncovering the risk profile; key differences between types of bank
- Loan quality: Impaired loans and reserve adequacy
- Off balance sheet exposures: Lending commitments, SIVs, conduits and other special purpose vehicles
- Trading risk: Assessing securities and derivatives portfolios, use of value at risk (VaR) models and stress testing
- Investment risk: Valuation and accounting policies, hidden reserve or black hole
- Exercise: The capital base and profitability of a bank may be influenced by their provisioning policies
- Exercise: Identify the risks prevalent in the trading operations of a commercial or investment bank
MODULE
Financial Fundamentals (continued)
- Market risk for the banking boo
- Main illustration case study: Assessing business risk, incorporating loan portfolio quality, trading portfolio and other credit and market risks
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
- Main illustration case study: Assessing performance of a bank, incorporating overall returns, income diversity and stability and cost control
Financial Risk – 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
- Liquidity: Quantitative and qualitative measures, Basel III liquidity
- Liquidity Coverage Ratio and Stable Funding Ratio
- Gap management: Using the tenor and interest rate mismatch tables to better understand refinancing risk
- Securitization vehicles: Accounting and credit implications
- Exercise: Demonstrate how a bank’s funding structure can impact its liquidity position and interest rate exposure Financial Risk – Solvency
- Capital: Size, quality and adequacy of capital base under Basel I, II and III
- Types of capital: Core (common equity) vs. Additional Tier 1 and Tier 2
MODULE
Financial Risk – Solvency
- Standardized and advanced approaches for credit, market and operational risk
- Leverage ratios: Benchmarks and challenge
- Capital adequacy: Measuring size, quality and adequacy of capital base; regulatory capital ratios and assessing regulatory capital for non-deposit takers
- Economic capital and internal capital adequacy assessment process (ICAAP)
- Stress-testing capital for market and credit write-downs
- Main illustration case study: Assessing financial risk including solvency, funding strategy and liquidity in the light of the risk profile of the business model
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
- Market indicators: Equity, CDS and bond indicators
- Lessons learned from banks
- Exercise: Distinguishing strong and weak players
MODULE
Management, Franchise and Ownership
This section focuses on the key risk areas and strategy, franchise and risk management.
- Management: Strategy, systems, skills, structure
- Risk management
- Francise: Strength of banking business model
MODULE
Support
This section considers which institutions may receive government or shareholder support and in what form that support may be received.
- Bail- in vs Bail-out, living wills, BRRD and TLAC Income stability and diversity: Earnings at risk
- Reliance on support: Rating floors; which creditors are supported
- Loss absorbing capability of various levels of capital including equity, preference shares, contingent convertibles, subordinated debt and senior medium-term debt
- Solvency vs. liquidity problems
- Regulatory responses to banking crisis: Recapitalization, guarantees, bad banks, insurance
- Exercise: Recognize the main approaches to support employed by governments and their pros and cons
MODULE
Group Case Study
The goal of this closing case study is for participants to apply the analytic framework to identify the strengths and weaknesses in a developed market commercial bank.
Upcoming
Dates
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| 15 - 17 Oct 20253 Days | In-person Classroom | Dubai | 3895 GBP | |
| 12 - 14 Nov 20253 Days | Virtual Classroom | SGT | 4295 USD | |
| 21 - 23 May 20253 Days | In-person Classroom | London | 3895 GBP | |
| 23 - 25 Jul 20253 Days | In-person Classroom | London | 3895 GBP | |
| 22 - 24 Oct 20253 Days | In-person Classroom | Frankfurt | 4695 EUR | |
| 17 - 19 Sep 20253 Days | Virtual Classroom | BST | 3295 GBP | |
| 09 - 11 Jul 20253 Days | In-person Classroom | New York | 5095 USD | |
| 24 - 26 Sep 20253 Days | Virtual Classroom | CDT | 4295 USD |
Frequently
Asked Questions
All courses start at 9am and end at 5pm.
Our courses are designed to be both engaging and flexible, offering a mix of classroom and virtual options to accommodate different preferences. Virtual classroom courses are via Zoom. The courses range from 1 to 5 days in duration, providing an immersive learning experience that is both interactive and case study-based. This approach ensures that participants can apply practical insights to real-world scenarios. The sessions are conducted by experienced trainers who were previously industry practitioners, bringing a wealth of knowledge and firsthand expertise to the training environment.
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.
You will receive joining instructions two weeks before the course start date, as long as we have received payment in advance of this.
Is there pre-course reading?
In order to optimize 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. You will need to bring a laptop or tablet to the course in order to access the course materials, as these will only be available electronically.
Can I pay via an invoice?
Yes. We will issue you an invoice, if requested at the point of booking.
When do I need to pay?
If your company is paying your invoice for you, your company will have 30 days in which to process it. If you are paying for the course yourself, you will need to pay before attendance.
What’s the accepted payment methods?
We accept bank transfers or payments via Mastercard, Visa or Amex (except Euro payments).
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. Based on this, we need to charge the appropriate Tax/VAT in each country we provide classroom based courses. The current rate of 20% VAT is added to courses taking place in London, 19% in Frankfurt, 9% in Singapore and 5% in Dubai. In other locations we may need to charge a sales tax although not currently for New York.
If I am unable to attend can I send a substitute?
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.
Can I transfer my booked course to another date?
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.
Can I cancel my course booking?
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.
What happens if I do not attend my course?
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 are unable to send anything more than our standard course communication. This communication will detail the course you are attending, the location and dates, so it will provide you with all of the information you require to submit a visa application.
No, we do not typically record a public course session. The only time we will record a session, is if a delegate is receiving funding and this is a requirement of the funding provider. In these cases, the recording is only shared with the funding provider and delegates do not receive a copy.
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