| Session 1: Review Objective:
An overview and refresher
General Introduction
- What is a bank
- The role of banks
- Type of banks
- Client base
- Services
- Personnel
- Economies of scale
- Management structure
- Regulation & reporting
- Shareholders expectations
- Exercise: What are the primary considerations for establishing a retail
banking operation? Consider this from four viewpoints; management, owners,
customers and regulators.
Session 2: Deposit taking
Objective: To understand the strategy and methodology underlining
deposit taking
- Definition
- Data bases & infrastructure
- Information gathering
- Deposit mix – current, deposit, term or fixed
- Liquidity needs & policy
- Pricing & advertising
- ATM’s
- Cash handling
- Money laundering constraints & know your customer
- Strategic goals
- Risk
- Regulation
- Deposit protection
- Profit considerations - hedging
- Exercise: What strategy, given your own market places, would you set
for deposit taking- bear in mind the four viewpoints; management, owners,
customers and regulators.
Session 3: The Principles & Control of Lending
Objective: To consider lending strategies and risk control.
Lending principles
- Basic principles of lending - “CCCPARTS”
- Policy and strategic goals/limitations
- Risk management & growth
- Regulatory constraints
- Brief discussion of Basel II
- Liquidity issues
- Hedging & swaps
- Exercise: What lending policies would you recommend for your area
of operation and why – again all 4 viewpoints
- Types of Lending
- Overdrafts & loans
- Term finance
- Asset finance
- Leasing
- Mortgages.
- Risk & reward considerations
- Capital adequacy, cost & return issues
- Exercise : An established client has started a retail business and
asks if you can provide working capital and longer term capital. They
are also thinking about buying further property. Consider the various
options.
- Exercise : A new client has asked for an overdraft facility and a
car loan. How will you assess this?
Session 4: Structured Lending
Objective: Provide a basic understanding of more complex lending
techniques
Structured Lending
- Types
- Interest only, phased, balloon & bullet terms
- Cash flow and information requirements
- Risks associated with interest roll up
- Security & control
- How does it work in practice
- Exercise: An established client is developing and opening a small
hotel and asks you to help fund it. How and in what ways could you structure
his borrowing requirements?
Session 5: Syndicated Lending
Objective: A brief introduction to the concept of syndication.
Syndicated Loans
- What is syndication
- When is it applicable
- Lead or participant role
- Risks & rewards
- Documentation
- Exercise: To suit group needs
Session 6: Credit Analysis
Objective: An overview of credit analysis..
Credit Analysis
- Proposals
- Plans
- Forecasts
- History
- Sector
- Security
- Risk Reward
- Global or book analysis
- Systemic analysis
- Exercise: You have been approached by a good and valued client who
is looking to take on a major commitment for which he will require your
support but before starting he would like to know from you what you
will need from him.
- Exercise: Consider the broader implications of taking on a very large
commitment.
|
Session 7: The Management of Risk
Objective: To consider the management of risk at an operational
level.
The Management of Risk
- What is risk
- Types of risk
- Lending limits
- Security limits
- Unsecured limits
- Monitoring & control – A & L Committee
- Reports, limits, excesses
- Risk control
- Debt recovery
- Exercise: Consider the lending carried out by your own organisation.
How well is it controlled, monitored and or policed?
Session 8: Pricing & Required Return
Objective: How to balance the demands of profit generation with
risk management and control.
Pricing & Required Return
- Risk/reward
- Secured/unsecured
- Return on capital
- Liquidity
- Short & medium term
- Head office expectations
- Shareholder expectations
- Exercise: To suit Group needs
Session 9: Capital Requirements & Regulations
Objective: An overview of organisational and regulatory considerations
Capital Requirements
- Basel II
- Liquidity requirements
- “Open mouth”operations
- Loan book cover
- Regulations
- International rules
- National & regional rules
- Other rules
- Money laundering
- Audit trails
- Exercise: to suit Group needs
Session 10: Sources of funding
Objective: An understanding of funding sources available to a
retail bank.
?Sources of Funding
- Current accounts
- Deposit and term accounts
- Money markets
- Inter bank markets
- Commercial paper
- Liquidity crisis issues
- Exercise: Your organisation is keen to expand on its lending book.
What constraints might there be on this and what action might you be
able to take to assist that process?
Session 11: Distribution Channels & Technology
Objective: How retail branches assist growth and the role of
technology
Distribution Channels
- Branch network
- Other organisations
- Internet
Technology
- Importance
- Cost
- Client requirements
- Management requirements
- Regulatory Requirements
- Civil Service model
- Exercise: Consider what minimum distribution channels are needed in
your organisation.
- Exercise: Consider what minimum technology is needed in your organisation.
Session 12: Asset Management
Objective: Understanding the broad management of the bank’s
assets
Asset Management
- Asset definitions
- Micro management
- Macro management
- Strategic goals
- Profit goals
- Regulatory constraints
- Exercise: Given a free hand, how would you change the mixof the assets
at your own organisation?
Session 13: The Impact of the Banking Crisis & Way Forward
The Banking Crisis
- What is it
- What caused it
- When will it subside
- SWOT analysis
- Consequences for retail bankers
END
|
Retail
Banking for Professionals
Course Venue: London EC2
4 Ravey Street
London EC2A 4QP
t: +44(0)20 7729 1811
f:+44(0)20 7729 9412
information@premiercs.co.uk |
