Bank Credit Analysis

In the current market environment there is an intense focus on making good credit decisions. This highly practical credit course will provide you with a detailed framework that is essential when performing credit analysis on banks and financial institutions

Course Highlights

The content of the sessions was very good…Very good leader

D.K., Hellenic Bank

Following this course, all participants will be able to:

Assess the credit worthiness of banks in the absence of a formal credit rating
Understand the key accounting standards, specifically IFRS
Identify key risk areas
Provide a framework for analysis
Undertake effective financial analysis
Use the CAMEL(B) approach as part of the analysis process
Identify and analyse key environmental drivers including regulatory issues
Identify and analyse the key factors influencing operational dynamics of a bank
Undertake a full analysis of a bank, demonstrating an understanding of the full range of analylitical tolls and a capacity to apply them in practice
Interpret the key financial ratios
Identify the main reasons and warning signs for bank failures

For details of the course trainer, please download the course brochure

Booking Information

Dates	Prices	Book This Course	Discount
08 - 10 Dec 2010	£ 1699		-

Course Programme

The content of the sessions was very good…Very good leader

D.K., Hellenic Bank

Perfect

S.B., ING

The knowledge gained was all new to me, so will be of use in the future…The Macro/Industry sessions were very valuable…The small group increased the interest

P.S., RBS

Understanding Risk

Banks as a risk transfer mechanism
Identification of key risk areas:
– Credit
– Liquidity
– Aggregation
– Maturity transformation
– Market
– Operations
– Information
Delegates will have the opportunity to discuss which areas are of most relevance to them in their local markets

Reporting Requirements

Assessing levels of transparency
Key accounting standards – application and analysis:
– IAS 30
– IFRS 7
– IAS 32
– IAS 39

Developing an Analytical Framework for Analysis

Defining and understanding the inter-relationship between
– Strategic risk analysis
– Operational risk analysis
– Financial risk analysis
Financial Risk Analysis
– Analytical structure (CAMEL)
– Key drivers
– Key ratios – calculation and interpretation
Peer group analysis
Trend analysis

Operational Dynamics

Integration of non-financial and financial elements of risk analysis
Using CAMEL(B) as an analytical structure
Market position
Diversification
Management and strategy
Credit risk
Market risks – structural
Market risks – trading
Funding liquidity and financial flexibility
Liability management
Capitalisation
Earnings
Risk management – credit risk
Risk management – market risk

Country Risk Analysis

General sovereign risks
Political risks
Economic risks
Indicators of financial system stress

Industry Risk Analysis

Structure
Customer base
Roots of system fragility
Regulation and deregulation – international, Basel II, EU specific, domestic
Future industry trends

Bank Failure

Why do banks fail?
General warning signs
Solvency
Support