3-in-1 Banking, Banking Risk and Compliance Masterclass

• The first module is the Fundamentals, where we cover what is banking, different types of banking (digital banking, retail banking, investment banking, central banking), as well as the essentials of lending, capital and reserves, and some key acts and regulations;
• In the Banking Business Models module, we will cover how banks make money, their types of income and expenses, types of capital, and accounting considerations;
• In the Bank Products module, we will cover the most frequent bank debt and deposit products that are offered, as well as some considerations on how bank product marketing is done;
• In the Loan Agreements module, we will dissect credit agreements in terms of lending. We’ll clarify covenants, representations, definitions such as what is “debt” or what is “EBITDA”, and more;
• In the Banking Risk Management module, we will cover the most relevant types of risks for banks, both extensively (from liquidity risk to cyber risk, conduct risk, counterparty risk and many others), as well as the two key ones: credit risk and interest-rate risk;
• In the Banking Compliance module, we will cover the most frequent types of regulations that banks must comply with – both regulatory and industrial;

LET ME TELL YOU… EVERYTHING

Some people – including me – love to know what they’re getting in a package.

And by this, I mean, EVERYTHING that is in the package.

So, here is a list of everything that this course covers:

• You’ll learn about the basic definitions of banks, as intermediaries between loans and deposits, making money mostly from the net interest income (NII) – the difference between interest earned and paid
• You’ll learn about the relationship of banks with other financial institutions, such as having brokerage or asset management divisions with banks, as well as their comparison with private lenders in the lending space;
• You’ll learn about multiple “banking” terms, including central banking, fractional banking, challenger banks, digital banks or correspondent banks, as well as what each means;
• You’ll learn about the key acts and regulations that have affected banks historically, including Glass-Steagall, Sarbanes-Oxley, Dodd-Frank, and the Basel accords;
• You’ll learn about the key activities in banking, from lending/debt extension for individuals or companies, cash management and treasury services, private banking and wealth management services, and capital markets activity (including both trading and brokerage/underwriting activities), as well as the split of these activities into two major dimensions: investment banking and retail/commercial banking;
• You’ll learn about the different types of funding from depositors, including retail depositors (the most frequent and “cheaper” source), wholesale deposits, wholesale debt, and equity, as well as the consequences of each in term of both liquidity and funding costs;
• You’ll learn about the three main types of bank revenue (interest income, fees and commission and capital market income) as well as their three main sources of expenses (operational costs, funding costs and loss reserves);
• You’ll learn about the maturity transformation process (transforming short-term deposits into long-term loans) and its consequences on Net Interest Income (NII);
• You’ll learn about the two tiers of capital that banks have, as well as the usually enforced ratios between Tier 1 and Tier 2 capital;
• You’ll learn about the “trading book” and the “banking book”, two balance sheets with two different accounting philosophies due to the different nature of their assets;
• You’ll learn about the main types of debt instruments provided by banks, including term loans versus RCFs (Revolving Credit Facilities), and the subtypes of RCFs (including overdraft facilities, liquidity facilities), Asset-Based Lending (ABL) – usually used for inventory finance or Accounts Receivable (A/R) finance, including factoring – as well as trade finance solutions (Letters of Credit or L/Cs, PO finance and forfaiting), project finance, money market facilities and leases, as well as the inner workings of syndicated loans;
• You’ll learn about the main types of deposits provided by banks, including checking accounts (also known as MTAs or Money Transfer Accounts), savings or timed deposits, and structured deposits (with an investment component);
• You’ll learn about the challenges of bank product marketing, due to lack of differentiation in product performance (as well as lack of clarity in product performance), the lack of attractiveness to consumers, as well as new technological changes pushed by digital banks;
• You’ll learn about loan agreements/credit agreements in general, including specific sections such as conditions precedents, the commitment, representation and warranties, the definitions used, and, the most “famous” components – the covenants;
• You’ll learn about the definitions used in credit agreements, such as what is “debt” and what is “EBITDA”, or what are “consistently applied” GAAP, and how small changes in these can radically change the attractiveness of such agreements. You’ll also learn about how negotiable can be secondary definitions, such as what are “dividends”, what are “investments”, and what are “material” events;
• You’ll learn about what are representations (affirmations by the borrower), as well as the three main categories of representations they must make: financial, business and legal representations – as well as examples of each;
• You’ll learn about the three main types of covenants – affirmative, negative and financial, as well as specific examples of affirmative covenants (actions the borrower must take, such as disclosing documents, using the proceeds for specific purposes, being insured, and more) and negative covenants (actions the borrower cannot take, such as speculating with loan money, taking on more debt or liens, changing the business fundamentally, and more);
• You’ll learn about financial covenants in specific, including their two main types, incurrence and maintenance, and the three main subtypes of maintenance covenants (performance-based, date-based and hybrid). We’ll also cover the most frequent types of maintenance covenants – coverage ratios, including the three most common ones: the Interest Coverage ratio, the Debt Service Coverage Ratio (DSCR), and the Fixed-Charge Coverage Ratio (FCCR) – as well as other frequent covenants such as the leverage ratio or limits on leases and capital expenditures;
• You’ll learn about all the relevant risks in banking – the two main ones being credit risk and interest-rate risk, both affecting the core lending activity of banks – but also covering operational risk, cyber risk, reputational risk, liquidity risk, funding risk, model and correlation risk, legal and compliance risk, underwriting risk, business and strategy risk, and market and portfolio risk;
• You’ll learn about the three main sub-types of interest-rate risk (which are gap risk, basis risk and option risk), as well as how these are usually mitigated with derivatives, such as interest-rate swaps;
• You’ll learn about credit risk in specific, and how it is usually mitigated with a combination of setting efficient credit limits, having a robust lending process, and leveraging both quantitative and qualitative data to mitigate the effects of information asymmetry and adverse selection;

MY INVITATION TO YOU

Remember that you always have a 30-day money-back guarantee, so there is no risk for you.

Also, I suggest you make use of the free preview videos to make sure the course really is a fit. I don’t want you to waste your money.

If you think this course is a fit and can take your knowledge of PE to the next level… it would be a pleasure to have you as a student.

See on the other side!