Bank Risk in Emerging Markets
Information
This course is designed for bank analysts, banking and credit officers specialising in bank relationships and limits, correspondent bankers, operational staff whose duties involve banking relationships, graduates who will be working in the credit function of an investment banking operation and those involved in the management of an institution’s assets and liabilities.
This course will provide you with the ability to understand the relative strength of smaller counter-party banks and give you the tools to create your own risk rating strategy. The need to understand the dynamics of country risk and the ability to anticipate the impact of ongoing trends and evaluate the potential for future risk will give you an invaluable advantage in the increasingly volatile financial sector.
Objectives
The course aims to provide a comprehensive understanding of the risks involved in extending credit exposure to banks, but provides specific focus for smaller banks and banks in emerging markets, and related accounting issues. It aims to provide an analytical framework in which to analyse and control exposure risks in emerging markets.
At the end of the course participants should be able to:
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Undertake a meaningful and accurate analysis of bank financial statements
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Appreciate the reasoning behind particular levels of exposure limits
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Understand and be able to compare credit ratings provided by credit rating agencies
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Create their own risk rating methodology
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Understand the political, economic, credit and other social risks to banks
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Identify appropriate, pre-emptive action aimed at protecting a bank’s interests should a counter-party’s financial condition deteriorate
The course provides a framework in which the importance of bank and country risk can be assessed in a global context. The course incorporates the use of BANKSCOPE industry standard financial analysis database incorporating financial statements on over 13,000 banks worldwide, and advanced case study material on financial risk analysis.
Schedule
Session 1:
Financial Analysis
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Sources of information (public and private)
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Interpretation of published material
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Understanding different types of banks (Universal, Commercial, Investment/Merchant)
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Qualitative versus Quantitative analysis
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Accounts (Balance Sheet, Profit and Loss, and off balance sheet items)
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Ratio analysis, historical analysis, and peer group analysis using BANKSCOPE
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Analysing Asset Quality and Asset Liability Management
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Bank Supervision and Regulatory Authorities
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Basle II Capital Adequacy Accords, Tier I and Tier II Capital, and the risk weighting of assets
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Key issues in assessing banks (Moody’s CAMEL B-COM Framework)
Session 2:
Country Risk Analysis
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Country risk, local, social, political and technological risks
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Country Risk Analysis and Modeling
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Factors of relevance to bank exposure
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Policy Issues
Session 3:
Credit Risk Management
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Preparing for a credit review
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Internal limits, setting and renewing
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Internal evaluation systems
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Role of the Credit Ratings Agencies
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Case studies on bank failures
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Ongoing review of counterparties and early identification of potential problems
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What to do if a counterparty fails
Course Close
Register interest
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.