BACEE’s Intensive Training Course on Bank Analysis October 18, 2009

The Training Course is aimed at analysts who intend to deepen their knowledge of analysing banks and counterparty risks related to banks.

During the Course we shall analyse the lessons of the current global financial crisis and its impact on banks, including the role of different market players (banks, investors, rating agencies, monoline insurers) the responsibility of supervisors for overlooking the factors leading to the crisis and their role in saving banks from failure. We shall also comment on the pro-cyclical character of several elements of Basel 2 and IFRS.

Further, we shall focus on a number of specific issues, arising during the practical analysis of Central and Eastern European banks, including, among others:

• understanding of different concepts of “banking” in different countries, quasi-banks and pocket banks


• assessment of shareholders (with practical examples of first-level, second-level and third-level shareholding)


• understanding of financial-industrial groups and the banks’ role within FIGs
  
  danger of misuse of funds attracted from foreign creditors (with practical examples)
  
  assessment of foreign shareholding, differences between strategic and portfolio investors, evaluation of investments by international financial institutions
  
  understanding of who is controlling banks, manipulations with shareholding
  
  assessment of Auditors’ Reports (comparison of coverage, contents, depth and transparency)


• advanced peer group analysis (how to define peers, comparison of financial indicators)


• analysis of the structure of banks’ Financial Statements – warning signs, disproportions, unordinary items – with practical examples – use of the “stability filter”


• assessment of quality of assets – difficulties, suggested analytical tools


• analysis of related–party transactions


• market-related analytical tools


• analysis of liquidity and funding


• detailed analysis of financial ratios, including use of benchmarking (comparison to region-wide and EU averages)


• compliance with banking supervision’s regulations (with practical examples)


• practical application of IFRS in bank analysis

We shall present several case studies on bank failures in order to help participants to spot the warning signs, understand the causes of failure and the lessons to learn.

We shall also offer a checklist of questions to be answered during the analysis of a bank and a flowchart of analysis, which may be used as guidance for analysts.

The Course will be organised in an interactive way, including teamwork in groups. Participants will form a Credit Committee and will assess several banks with the final goal of establishing (or refusing as the case may be) credit lines for the analysed banks.

Conference information provided by konferenciakalauz.hu

Official Website: http://www.bacee.hu/091019-en