Financial Institution Analysis
- Price: US$ 150.00
- Publisher: KESDEE
- Number of modules: 8
- Length: 16-24 hours
- Language: English
- Subscription: 12 months
How to Analyze and Rate the Strength of Banks
The CAMELS Approach to Financial Institution Analysis is used by the US Federal Reserve to rate the health of banks and financial institutions.
You will learn how to assess Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity of a bank. You will use real-life examples to identify risks in internal processes, evaluate those risks, monitor procedures and effect internal controls.
The CAMELS Approach to Financial Institution Analysis has 8 modules of 2 - 3 hours each. The major topics of the course are:
1. Overview of CAMELS
- Introduction to CAMELS rating system
- Description of each CAMELS component: Capital adequacy, Asset quality, Management, Earnings, Liquidity, Sensitivity
- The purpose of a rating system
2. Banks' Earnings Ability
- Different components of earnings
- Importance of earnings for a bank’s financial condition
- Different earning ratios on a Uniform Bank Performance Report
3. Capital Adequacy
- The purpose of capital
- Factors for evaluating capital adequacy
- The measurement of capital
- Prompt Corrective Action
4. Asset Quality
- Concept of asset quality
- Impact of asset quality on financial statements
- Past-due and non-accrual loans
- Asset quality ratios
- Asset classification
- Rating of asset quality
- Adequacy of allowance for loan and lease losses
5. Management Competence
- Management organization and function
- Assessment of management
- Evaluation factors and ratings
6. Liquidity
- Liquidity risk
- Liquidity management
- Evaluating liquidity
7. Market Risk
- Components of market risk
- Identifying areas sensitive to market risk
- Measuring interest rate risk
- Evaluating and rating sensitivity to market risk
8. Composite Rating
- Composite rating guidelines
- Summary of composite ratings
- Assigning a composite rating to the case bank
