Key Financial Drivers of Success in Banks

Course Objectives

This two day workshop uses the client bank as a case study to provide participants with an understanding of their bank, the key risks and how they are evaluated in the marketplace. Specifically, participants will be equipped to:

Understand the business model of their bank and the risk profile of the various businesses.
Recognise how overall performance is evaluated by the market and how this benchmarks against peers.
Understand the changing macro economic, competitive and regulatory drivers of bank performance and assess how management strategy is adapting to these.

Target Audience

The workshop can be pitched at an introductory, intermediate or advanced level. As shown in the outline below, the workshop assumes some basic understanding of banking products and services and the financial statements of a bank. For a less experienced audience, the workshop could be adapted either by extending it to three days or by simplifying some of the content. This would allow us to give an explanation of all these items and their implications during the workshop. We could also send additional precourse work.

Content

BANKING BUSINESS MODELS

The goal of this session is to differentiate different types of financial institution and understand the risk profile of different banking activities.

Types of financial institution

Alternative business models for banks: client bank versus peers
Relating the business to the balance sheet and income statement
Major balance sheet and income statement components.

Key activities

Key banking activities: the risk profile of different activities: deposit taking, lending, sales and trading, insurance, investing and services
Risks faced by financial institutions: credit, market, operational, liquidity etc.
Client bank business divisions: e.g. consumer / retail, commercial / SME, wholesale banking, treasury / capital markets, asset management
Credit products: mortgages, unsecured credit lines, other loans, leases, trade finance and guarantees; on and off balance sheet
Sales and trading products: money and capital markets products, derivatives
Services: asset management, advisory, cash management etc.
Insurance: life and non life insurance products.

Case study:

Understanding the client bank business model, franchise and management strategy.

ANALYTIC OVERVIEW

The goal of this session is to understand how banks are evaluated by shareholders, creditors and regulators.

Structured approach

Overview of the frameworks and tools of bank analysis
Perspectives on analysis: rating agencies, debt and equity investors, markets, other banks, etc.
Understanding bank debt ratings and the criteria adopted
Understanding bond and equity investors: key indicators of performance – bond and CDS spreads, price / earnings, price book and other equity indicators
Framework for assessing of key risks in financial institutions: operating environment, management and franchise, financial fundamentals and support.

Case study:

Client bank share price, CDS, bond prices and ratings.

OPERATING ENVIRONMENT

The goal of this session is to understand the key macro economic, regulatory and competitive factors which shape bank strategy.

Macro economic and competitive factors

Systemic risk in banking crises: lessons learned
Impact of macro economic variables on performance
Key players: banks (key differences according to market e.g. money centre, regional and community banks in Indonesian; universal, commercial and savings banks ), mortgage underwriters, finance and leasing and other non bank financial institutions; insurers
Impact of competition on performance.

Case study:

Who are the client bank’s competitors and how does this impact strategy?

Regulation and supervision

The role of the regulator and supervisor
Lender of last resort: lessons being learned from stress situations
Impact of key regulations on bank strategy and performance
Capital adequacy: regulatory requirements – Basel I, II and III – risk weightings of assets and off balance sheet items; capital tiers
Expected changes in regulations in response to crisis e.g. Dodd Frank.

Case study:

Impact of changing regulations on the client bank.

Financial Fundamentals

The aim of this session is to demonstrate how the financial performance and credit standing of the client bank is measured.

Asset quality

Lending: Performing and non performing loans, provisioning and write offs, trade finance and guarantees
Ratios used to quantify the risk profile of the loan and lease book
Trading: Analysing trading, derivative and investment risks: value at risk, income volatility and other disclosure
Investment risk in the insurance business
Securitization: residual risk, servicing rights.

Case study:

Client bank vs. peers.

Earnings

Ratios to measure overall performance
Types and quality of income: net interest, trading, fees and commissions, etc.
Impact of earnings accrual and asset impairment policies. (loan losses, mark to market, write downs etc.)
Insurance earnings and impact of differing product mix and distribution policies
Ratios used to measure cost control and provision burden.

Case study:

Client bank vs. peers.

Funding sources

Funding: deposits, commercial paper, bank lines, senior and subordinated bonds, ordinary and preference share capital
Measuring stability and variety of funding base
Securitization: understanding the impact of off-balance sheet funding vehicles on earnings, assets and capital
Ratios used to measure funding stability and liquidity.

Capital adequacy

Types of capital: ordinary and preference shares, subordinated debt
Regulatory capital:impact of Basel II
Ratios to measure capital adequacy.

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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.