Certificate in Bank Analysis

Structured approach to analysis: Defining CAMELS within the context of overall bank analysis Types of Financial Institution: Key activities and products of financial institutions: credit products, trading and investing, services and funding, Relating the business to the balance sheet and income statement: differences between balance sheets of different types of bank and non-bank financial institution. Asset quality: Statement logic and accounting: types of credit risk, on and off balance sheet, accounting for problem impaired loans, Trading and investments: securities and derivatives portfolios. Sensitivity to Market 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 Earnings: Statement logic and accounting: types of income and expense, impact of earnings accrual and asset impairment policies, core and non-core earnings. Liquidity and Funding: Statement logic and accounting: funding sources, on and off balance sheet treatment for securitization,Funding stability and different sources: deposits, commercial paper, repos, inter-bank lines, senior and subordinated bonds, common and preferred stock. Capital Adequacy: Statement logic and accounting: types of capital, reported book equity, adjusted common equity and hybrid capital Overview of the framework and tools of bank analysis: operating environment, financial fundamentals, management, support. Focusing on the impact of external factors on the banking systems, including the economic environment, competitive environment and regulatory and supervisory pressures