Investment and International Banking
This program introduces participants to the role of risk analysis of financial institutions in general, and commercial and investment banks in particular, with a focus on:
- Financial Profile of Commercial and Investment Banks: The income statement and balance sheets of both commercial and investment banks compare and contrast to those of manufacturing and distribution companies
- Capital Adequacy: Importance of capital adequacy and how it is measured and applied in different international and domestic regulatory requirements, focusing on the key financial measurements used in today’s marketplace
- Earnings Sustainability: A review of the key financial income statement ratios and techniques for measuring earnings sustainability in commercial and investment banks how such techniques can be used to exaggerate earnings or conceal losses
- Liquidity and Funding: Focusing on the various sources of funding for commercial and investment banks, gap analysis, and the asset and liability management at such institutions
- Asset Quality: Measurements for assessing a commercial bank’s asset quality with a focus on techniques to analyze its loan book and investment bank’s asset quality with a focus on its investments in marketable securities, traded assets, derivatives assets, and equity investments
- Market Valuation Techniques: Introduction to the way equity markets value both commercial and investment banks with an emphasis on income statement and balance sheet multiples and how such techniques can be employed by financial counterparties in identifying warning signs
Using real life case examples taken from the public markets, participants will review their bank’s role as a counterparty to U.S., European, and emerging markets commercial and investment banks.
The program will focus on recent regulatory and accounting developments in the financial services industry while at the same time provide the participants with a fully integrated model for assessing the risks inherent in doing business with commercial and investment banks.