Evaluation of Banks and Financial Institutions Risks

Course details

This course provides participants with the skills needed to analyze bank financial statements, in order to be able to compare bank performance and financial condition. The course will also cover the correspondent relationship with banks and financial institutions.

Course Description:

This course provides participants with the skills needed to analyze bank financial statements, in order to be able to compare bank performance and financial condition. The course will also cover the correspondent relationship with banks and financial institutions.

Course Objectives:

• List the different types of banks and financial institutions.
• Analyze bank financial statements in detail.
• Discuss the types of risks that banks face in their activities
• Explain the relationship between financial institutions and correspondent banking.
• Describe the foreign trade products and services available to bank clients

Course Outline:

Module 1: Economic Role of the Banks

• Economic role of the banks
• Types of banks
• Bank departments
• Sources and uses of bank money
• Accounting system in banks
• Other financial institutions
• Bank risks
• The financial institutions (FI) department in banks
• Role and function

Module 2: Bank Role in Financing Foreign Trade

• The relationship between financial institutions and correspondent banks – domestic and foreign
• The role of banks in facilitating international trade
• The types of credit lines to banks
• Transaction of products and services between correspondent banks

Module 3: Bank Risk Analysis

• Importance of Financial statements to banks
• Identification of the most important users of financial statements
• The basis of measurement, evaluation and tabulation of assets and liabilities
• Financial investments
• Exercises

Module 4: Assessment of Country Risks

• Definition of market risk
• Tools of country risk assessment
• Political risks
• Financial risks
• Economical risks
• International risks indicator

Module 5: Reasons of Bank Collapse

• The main reasons of bank collapse
• Consequences of bank collapse
• Case studies

Assessment Strategy:

Participants will be informally assessed on their interaction during sessions and their participation in exercises.