This affordable, convenient online program is ideally suited to those who are new to banking – both frontline staff and those newly hired to leadership positions who gained their experience in other industries. Learn the language of banking, including an understanding of key ratios, to gain a clearer understanding of how the bank functions as a business.
The program is split into two parts:
PART 1: Risky Business – An overview of the business of banking, industry trends, with an emphasis on risk management using the “Big 5” Risks for Banks as our tour guide: Credit Risk, Market Risk, Liquidity Risk, Operational/Legal Risk, and Regulatory/Reputation Risk.
PART 2: An Open Book – to a Degree – Using the same tour guide as above, Participants will learn to look up their own bank’s key performance management ratios, comparing to FDIC peer group and national averages.
- How a bank makes and loses money
- An overview of a bank’s balance sheet and income statement
- The importance of your bank to the local economy using the money multiplier as an example
- Risk arbitrage for both borrowers and depositors
- Enterprise Risk Management (ERM)
- Industry trends and current conditions
- How to manage each of the “Big 5” risks with examples and stories
- 4 key areas of bank financial management
- How to look up and use bank ratios (with UBPR and SDI tools provided)
- Overview of CAMELS and regulatory enforcement actions, and,
- How to ‘thrive’ in a recession
The following ratios will be explained: ROA, ROE, Efficiency Ratio, Past Dues, Non-Accruals, Charge-offs, Loan Loss Reserve level and coverage, Spread/NIM, Loan-to-Deposit Ratio, Core Deposit Funding, and Equity Capital Ratio.
Participants will receive their bank’s UBPR (Uniform Bank Performance Report) and Excel template to quickly enter ratios and chart trends with comparisons to industry guidelines.
Target Audience: Those that are new to the banking industry