Certified Bank Performance Specialist Course
Corporate Finance, Banking and Auditing

Select Other "city & date"
Certified Bank Performance Specialist Course
Course Overview:
The course of the Certified Bank Performance Specialist is quite practical in that it provides its participants with a robust knowledge of banks’ accounts and performance ratios.
It examines accounting information with an emphasis on computing earnings, while comprehending crucial aspects of risk and return dimensions in a bank. Participants will learn to calculate several ratios, use CAMEL analysis to determine the quality of assets, and assess the adequacy of capital based on Basel III limits.
The course also discusses other risks such as liquidity, credit, operational and market risks in conjunction with treasury functions and pricing of banking products.
Concepts are reinforced with case studies from the real world such as those of Citigroup and historical incidences of failures of banks.
This course will be most useful for mid – level managers involved in risk management, internal auditing with corporate strategies, and revenue generation processes with the intention of enhancing their understanding of finance operating performance and strategic decision making within the banking.
Course Objectives:
By the end of this Certified Bank performance specialist training course, you will be able to understand:
- Practical understanding and knowledge of how to read and interpret bank financial statements
- Developing a set of performance metrics relevant to banks
- Understanding the close relationship between risk and return in banking
- Appreciating the importance of bank strategic choices in relation to risk
- Developing greater cost awareness in connection with banking operations and services
Who Should Attend?
The course is suitable for a variety of managers at midlevel across the organization, including a broad range of middle to senior management involved either in operational or accounting/reporting activities within a bank, including risk management, internal control, and corporate planning. It is also appropriate for staff engaged in revenue-generating activities, whether lending, trading, or other transactions.
Course Outlines:
Introduction
- Overview of the financial industry – types of banks and business lines
- The financial crisis and systemic risk
- Industry benchmarking
Bank Financial Statements
- Structure of the income statement, with emphasis on:
- Interest and trading income
- Profit margins, provisions and cost categories (overheads)
- Structure of the balance sheet, with emphasis on:
- Loan portfolio and loss provisioning
- Asset classes and their valuation
- Liability composition
- Shareholders’ equity
- Assets-Liability matching; the concept of gapping
Case study: Matching financial statements to type of bank
- The objective is to consider several sets of financial statement structures and to match them to different banks based on the type of activity.
Developing a Set of Financial Ratios to Measure Performance
- Financial profitability analysis: key performance indicators
- Methodologies to measure/assess financial profitability
- Return on Equity
- Return on Risk Assets
Case study: Analysis of a Financial Statement
- Participants will work in groups to analyze a set of financial statements of a commercial bank, evaluating strategy, computing ratios and coming to conclusions as to financial condition
CAMEL Framework
- Capital adequacy -- Basel III and regulatory capital
- Asset quality and impairments
- Management analysis
- Earnings: Composition, sustainability and quality of earnings
- Liquidity requirements
Case study: Citigroup
- This case is a real-life discussion of the factors involved in anticipating the problems confronting a global financial institution which nearly led to its collapse. The perspective adopted by participants is one of an external bank analyst.
Regulatory Considerations
- Too big to fail – bail outs and the concentration of risk
- The nature of systemic risk
- Economic vs. Regulatory capital
Basel 3 Capital adequacy
- Liquidity risk
- Credit risk
- Probability distributions
- Expected and unexpected losses
- Value-at-risk
- Operational risk
- Fraud
- Market risk
Case Study: Risk-Adjusted Return on Capital
- This is an illustration of the calculations to determine the amount of capital required to cover credit risks
An Examination of Other Risks Relating To:
- Off-balance sheet operations
- Information technology
- Reputation
- Political and sovereign factors
Treasury Instruments
- Funding risk and strategies
- Asset and liability management -- gapping
- Interest rate risk and foreign exchange risk
- Hedging
- Inter-bank markets
- Over-the-counter trading
- Exchange-traded instruments
- Derivatives: Futures, swaps and options
Pricing Of Products and Services
- Pricing strategies/bundled pricing of services
- Economic cost of services
- Internal (transfer) pricing of services
- Common costs (overheads); economies of scale/scope
- Distribution channels
Customer Relationship Management (CRM) Performance
- Customer profitability reports
- Standard costs – treasury pool rates
- Client target market and acquisition strategy
- Cross-selling
- Pricing exceptions
- Operating cost management / allocation of costs
Incentive Policies to Motivate Customer Relationship Managers
- Base salary
- Bonuses
- Stock options – other employee schemes
Business Organizational Design
- Business line analysis
- Work-process flows
- Budgeting aspects
Board of Directors’ Perspective
- The importance of strategy
- Corporate governance
- Risk management and internal control
- The sub-prime controversy
Diagnosis and Discussion of Past Bank Failures
Case study: How banks fail