Early Warning Signals in Banks

Course Objectives

This two day intensive workshop will provide a structured approach for identifying early warning signals in financial institutions. The aim is to equip participants with the knowledge and skills to proactively:

Understand the causes and symptoms of both systemic and individual bank failure in the global financial crisis
Anticipate and quantify the vulnerability of institutions to liquidity and refinancing risk
Stress test solvency for write downs from credit, trading, investment and derivative positions
Differentiate qualitative, quantitative and market indicators of credit deterioration
Identify the likely triggers or events which would change the credit standing of a company in the future.

Target Audience

Experienced credit risk and fixed income professionals with a good understanding of the analysis of financial institutions. This workshop follows on from our intermediary level workshops: Training Intensive Bank Analysis, Emerging Market Bank Analysis and Non-Bank Financial Institutions. Advanced Bank Analysis: is a complementary advanced level workshop which drills down into the financial statements of banks with complex activities and accounting practices.

Content

ANALYTIC OVERVIEW

Signs of distress

Common themes in troubled financial institutions: excessive growth, over-concentration, volatile earnings sources, asset and liability mismatches, dependence on unstable funding
Symptoms of a company’s deteriorating credit standing: financial, non-financial and market indicators.

Structured analytic approach

Four step approach to focus on key issues: purpose, payback, risks and structure
Purpose of the exposure and sources of payback: importance of refinancing in financial institutions, challenges to downsizing assets and availability of external support
Risks to repayment: Identify the key macro, sector and company specific business and financial risks which might jeopardise repayment
Structure: conclude on appropriateness of the facilities, assess the level of protection and critique the pricing to assess the risk: return.

Case study:

Institution expanding aggressively without a strong deposit base. Lessons learned from the origins of the crisis.

OPERATING ENVIRONMENT

Key macro economic and sector trends, which are likely to erode creditworthiness.

Systemic risks within a financial system: macro variables, competitive pressures, shadow banking system, quality of regulation and supervision
Support for the banking system: too big to fail or too big to rescue?
Origins of the credit crunch: sub-prime, structured finance (MBS, CDO, SIVs and ABCP), leveraged loans, dependence on interbank and etc.
Key market risks: including funding problems in the Eurozone and other countries, commercial real estate exposures in Europe and the US
Potential impacts of forthcoming regulatory changes: Basel III, Dodd-Frank.

Case study:

Stressed countries and banking systems.

MANAGEMENT AND SHAREHOLDERS

This section will focus on comparing management responses to a challenged sector.

Companies in crisis: recognising weak management and lack of integrity
Risk management challenges: liquidity, reputation, operational risk
Disclosure and corporate governance concerns
Inter-group support: ability of a stressed parent company to support subsidiaries.

Case study:

A failed investment bank.

BUSINESS RISK

This section will focus on companies with challenged business models and companies in crisis.

Credit risk: asset quality in the loan book; excessive growth and concentrations, hidden impaired loans; using surveillance reports to anticipate credit risk problems
Market risk: stress and back testing VaR indicators, acceptable levels of exposure to structural interest rate and FX risk
Derivatives: hidden credit and market risks; appropriate exposure levels
Performance risk: assessing earnings volatility.

Case study:

Bank failures due to exposures to credit risk, trading and investment losses, derivatives and structural interest rate risk.

FINANCIAL RISK

This section will focus on the stability of a company’s funding structure and the ability to withstand solvency and liquidity crises.

Assessing the diversity and stability of funding sources: refinancing risk: quantifying liquidity and financial flexibility
Asset and liability management concerns: FX, interest rate and maturity mismatches
Liquidity risk management: managing and stress testing transaction and funding stability
Securitisation vehicles: liquidity exposure to conduits, servicing rights and other residual interests, sub-prime risks
Double leverage: challenges of a leveraged holding company
Solvency: stress testing quality and adequacy of capital to withstand write-downs.

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Kami memberikan alternatif Fasilitas atas Investasi anda dalam Program ini, diantaranya :

Sertifikat, Peralatan Training, USB, Souvenir, Lunch, Coffe Break, City Tour
Running minimal 2 Orang (Semarang, Jogja, Solo), Running minimal 3 Orang (Bandung, Jakarta), Running 4 Orang diperuntukan untuk daerah (Bali, Lombok, Manado, Balikpapan)
Kami menyediakan transportasi antar Jemput dari Stasiun/Bandara ke Tempat Pelatihan(Hotel) bagi perusahaan yang Running minim 2 Orang
Harga dilampirkan di Brosur Penawaran

Untuk daerah luar Kota Yogyakarta Harga Menyesuaikan.

Hotel Pilihan (Sementara) Bisa Menyesuaikan sesuai Kesepakatan.

Hotel Ibis Malioboro, Yogyakarta
Hotel Ibis, Solo
Hotel Ibis Simpang Lima Semarang
Hotel Fave, Balikpapan
The Santosa Villa and Resort, Lombok
Hotel Nagoya Plaza, Batam
Hotel Gino Ferruci, Bandung
Hotel Fave Pasar baru Jakarta, Jakarta
Hotel Santika Kuta, Bali
Hotel Aston, Manado
Hotel Santika Pandegiling, Surabaya

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Tambahan Informasi :

1. Silahkan tanyakan ketersediaan Tanggal dan Waktu dari jadwal training terbaru apabila anda tidak menemukan waktu yang sesuai dengan jadwal anda.

2. Training dapat disesuaikan dengan kebutuhan perusahaan jika dalam bentuk In-House Training. Silahkan baca ketentuan In-House Training diwebsite kami atau hubungi kami di Nomer Mobile untuk mendapatkan Fast Respon.

3. Silahkan mengisi Form Request Training di website kami untuk mendapatkan informasi tambahan yang belum ada, atau jika anda ingin menanyakan usulan materi sesuai kebutuhan perusahaan. Hubungi kami lewat email yang tertera atau Register disini!

4. Apabila telah menerima Silabus Training, Customer dapat Request Waktu Training yang diinginkan.

5. Informasi dan Data yang jelas akan memudahkan kami untuk segera merespon permintaan anda.

Early Warning Signals in Banks