What You'll Learn
- Learn the regulatory framework of commercial banks
- Build a financial institution forecast model
- Understand the challenges with bank valuation
- Includes Excel Financial Institution model templates
This intensive course is designed to equip FIG-focused investment bankers, equity research analysts, and bank industry corporate finance professionals with the practical financial skillset they need on the job. In this course, participants focus exclusively on financials and build a complete banking model, as well as a DCF and comparables valuation.
Taught by experienced FIG industry professionals, this is the same intensive training used to prepare incoming analysts at top financial institutions.
Bank Industry Financial Statement Modeling You will learn how to build an annual forecast model for a financial institution while being guided through the unique regulatory framework and business model of banks.
Bank Industry Valuation Modeling You will build perform valuation modeling on a financial institution, while navigating through the unique industry challenges of expensing of debt service and income, the regulatory constraints on reinvestment, and the calculation of levered vs. unlevered free cash flows. Alternative approaches to valuation will be discussed including Dividend Discount Models (DDM).
Pre-Seminar Excel training
This boot camp assumes proficiency in Excel. Enrollment includes access to our popular Excel Crash Course for those who need an Excel refresher.
CFA Society of New York,
1540 Broadway, Suite 1010,
New York, NY
Why attend a boot camp?
Our live courses pulls no punches. Each boot camp is the same intensive training used to prepare incoming analysts at top financial institutions.
Learn by doing
Attendees “learn by doing” by working through practical exercises and building financial models from scratch using real case studies.
Boot camps provide an opportunity to network with MBAs and professionals from industries including investment banking, corp dev and FP&A.
Our instructor-practitioners are experienced bankers who give real-world context by connecting training to their own experience on the desk.
Our training reinforces speed, efficiency and consistency in Excel that investment banking analysts are expected to have on Day 1.
Continuing ed & webinars
Enrollment includes lifetime access to our continuing education online training platform and our popular monthly webinar series.
Commercial banks and the regulatory framework
- Overview & paradigms of the banking system & regulation
- Understanding the role of credit rating agencies
- Basle II compliance and its effect on bank regulation and the three pillars
- Bank’s Internal rating systems
- Calculating risk weighted assets
- Calculating tier one and tier two capital
- Double leverage as a workaround
Building a financial institution forecast model
- Retail banking
- Consumer lending and credit cards
- Commercial banking
- Investment banking
- Asset / wealth management
- Balancing the model and checking for accuracy
- Error-proofing techniques & sensitivity analysis
- Ratio analysis
Challenges in bank valuation
- Debt service and income as operating or financing expense
- Regulatory constraints on reinvestment and implications on growth
- Challenges to the traditional firm valuation approach, and the calculation of levered vs. unlevered free cash flows
- Alternative approaches to valuation: Dividend discount models (DDM), Excess return valuation, Comparables and appropriateness of price / book (PB) ratios
Building a bank valuation model
- Learn how to build a residual income valuation model based on the projection derived in the balance sheet and income statement projection model.
- Projecting cash flows
- Calculating the cost of equity
- Other issues in valuation
- Incorporating regulatory constraints on the valuation
- Regulatory capital ratio and calculating minimum capital adequacy
Questions? We're standing by.
To learn more about this boot camp, fill out the form below or call us at: 617-314-7685