Bank Examination and Financial Analysis Training Course

Participants can map key bank activities to reported financial statement line items.

• Statement of financial position classification for bank assets and liabilities
• Income statement drivers: interest income, fees, impairments, and trading results
• Cash flow statement limitations for deposit-taking financial institutions
• Notes disclosures supporting loan, deposit, securities, and derivative analysis
• IFRS accounting policies affecting recognition, measurement, and presentation
• Reconciling annual-report figures with prudential and management reporting

Participants can structure a financial analysis and test the reliability of source data.

• Common-size analysis reveals structural changes within bank financial statements
• Trend analysis separates recurring performance from exceptional accounting movements
• Peer groups selected by business model, geography, size, and funding
• Data-quality checks reconcile totals, definitions, periods, and reporting currencies
• Management information limitations identified through source-to-report tracing
• Analytical hypotheses documented before seeking corroborating examination evidence

Participants can assess whether reported bank earnings are sustainable and risk-adjusted.

• Net interest margin decomposed by asset yields, funding costs, and volumes
• Return on assets and equity adjusted for one-off items
• Cost-to-income ratio analysed alongside operating model and investment spending
• Non-interest income assessed for stability, concentration, and conduct exposure
• Earnings-at-risk indicators linked to credit losses and rate movements
• Management forecasts challenged using assumptions, sensitivities, and historical accuracy

Participants can identify credit-risk concentrations and structural vulnerabilities within loan portfolios.

• Loan portfolio segmentation by product, sector, geography, and obligor
• Credit lifecycle from origination through monitoring, restructuring, and recovery
• Borrower repayment capacity assessed from cash flow and collateral
• Concentration measures identify correlated exposures and single-name dependency
• Watchlists and early-warning indicators support timely credit-risk escalation
• Underwriting standards tested against policy, approvals, and exception records

Participants can assess asset quality using arrears, non-performing exposure and recovery evidence.

• Delinquency buckets analysed by product, vintage, sector, and geography
• Non-performing loan ratios reconciled to regulatory classification definitions
• Migration analysis tracks movement between performing and impaired categories
• Forbearance practices reviewed for masking default and portfolio deterioration
• Collateral valuations tested for recency, enforceability, and recovery assumptions
• Write-off policies compared with recoveries, ageing, and collection performance

Participants can evaluate key IFRS 9 expected credit loss assumptions and reporting effects.

• IFRS 9 staging criteria distinguish performing, underperforming, and credit-impaired exposures
• Probability of default models assessed for segmentation and calibration
• Loss given default estimates tested against collateral and recovery history
• Exposure at default assumptions reviewed for revolving and contingent facilities
• Forward-looking macroeconomic scenarios challenged for governance and plausibility
• Provision coverage compared with portfolio risk, arrears, and peer banks

Participants can assess liquidity resilience and identify funding concentrations requiring attention.

• Funding mix analysed by depositor type, maturity, currency, and stability
• Contractual maturity gaps distinguish expected cash flows from behavioural assumptions
• Liquidity Coverage Ratio components reviewed under Basel III definitions
• Net Stable Funding Ratio assesses longer-term funding adequacy
• Deposit concentration metrics identify withdrawal and rollover vulnerabilities
• Contingency funding plans tested against available collateral and market access

Participants can interpret interest-rate risk measures and challenge balance-sheet sensitivity assumptions.

• Repricing gap analysis identifies rate-sensitive asset and liability mismatches
• Economic value of equity measures long-term interest-rate sensitivity
• Net interest income sensitivity tested under prescribed rate shock scenarios
• Behavioural assumptions for non-maturity deposits assessed against observed customer behaviour
• Prepayment and early-withdrawal assumptions reviewed for model risk
• Hedging instruments evaluated for effectiveness, basis risk, and accounting treatment

Participants can assess market-risk exposures, limits and treasury control arrangements.

• Trading book positions classified by instrument, desk, currency, and risk factor
• Value at Risk interpreted alongside stress testing and back-testing
• Sensitivity measures capture duration, foreign exchange, equity, and spread exposures
• Treasury limit breaches investigated through approvals, escalation, and remediation
• Independent price verification tests valuation reliability for traded instruments
• Counterparty exposures assessed through replacement cost and collateral arrangements

Participants can evaluate capital strength, composition and vulnerability under adverse conditions.

• Common Equity Tier 1 capital reconciled to audited financial statements
• Risk-weighted assets analysed by credit, market, and operational risk
• Capital ratios compared with regulatory minima, buffers, and internal targets
• Capital planning links earnings retention, dividends, growth, and risk appetite
• Stress-testing results assessed for capital depletion and management actions
• Asset-quality deterioration translated into projected capital and provisioning impacts

Participants can evaluate operational-risk exposures and assess the design of key controls.

• Operational-risk events classified by people, process, systems, and external events
• Risk and control self-assessments evaluated for ownership and evidence
• COSO control components applied to bank processes and reporting
• Key risk indicators tested for thresholds, data lineage, and escalation
• Fraud risk reviewed through segregation of duties and monitoring controls
• Business continuity arrangements assessed for critical services and recovery objectives

Participants can assess whether governance arrangements support effective bank risk oversight.

• Board responsibilities assessed through mandates, minutes, and challenge records
• Risk appetite statements linked to limits, metrics, and escalation triggers
• Three-lines model clarifies management, risk oversight, and assurance responsibilities
• Senior management information evaluated for timeliness, accuracy, and decision usefulness
• Remuneration incentives reviewed for excessive risk-taking and conduct conflicts
• Related-party exposures examined for approvals, reporting, and concentration risk

Participants can identify conduct and compliance weaknesses with financial and reputational consequences.

• Conduct-risk indicators identify unsuitable sales, complaints, and remediation exposure
• Customer due diligence controls assessed through onboarding and periodic review
• Transaction monitoring scenarios tested for coverage, alerts, and investigations
• Sanctions screening governance reviewed for list updates and false positives
• Regulatory breaches analysed for root causes, customer harm, and reporting
• Compliance testing plans prioritised by inherent risk and control effectiveness

Participants can assign and support a structured bank-condition rating using examination evidence.

• CAMELS components connect capital, assets, management, earnings, liquidity, and sensitivity
• Rating criteria distinguish isolated weaknesses from systemic risk concerns
• Evidence matrices connect findings, sources, ratings, and supervisory implications
• Trend direction informs forward-looking ratings and examination priorities
• Management capability assessed through decisions, controls, and remediation delivery
• Overall ratings reconciled with component ratings and material residual risks

Participants can prepare a risk-based examination plan with clear objectives, evidence needs and resources.

• Pre-examination profiles consolidate financial trends, prior findings, and emerging risks
• Scope decisions prioritise material activities, products, legal entities, and controls
• Examination objectives translated into procedures, evidence requests, and sampling plans
• Sampling approaches selected using risk, materiality, population, and judgement
• Information-request lists specify ownership, dates, definitions, and file formats
• Planning memoranda assign responsibilities, milestones, quality reviews, and escalation points

Participants can gather reliable evidence, test management explanations and document conclusions.

• Document review tests policies, approvals, reports, and exception management
• Interviews planned with role-specific questions, evidence requests, and follow-up points
• Walkthroughs trace transactions from initiation through accounting and reporting
• Management explanations challenged using contradictory data and independent sources
• Evidence sufficiency assessed for relevance, reliability, corroboration, and timeliness
• Working papers document procedures, results, judgements, and reviewer sign-off

Participants can write clear findings and corrective actions that support timely remediation.

• Finding statements define condition, criteria, cause, effect, and required action
• Root-cause analysis distinguishes control failure from isolated human error
• Risk ratings combine impact, likelihood, persistence, and management responsiveness
• Corrective actions specify accountable owners, milestones, evidence, and completion criteria
• Examination reports separate facts, analysis, conclusions, and supervisory expectations
• Closing meetings communicate priorities, disagreements, commitments, and escalation consequences

Participants can create forward-looking monitoring indicators and escalation triggers for a bank.

• Early-warning indicators combine financial ratios, portfolio trends, and control signals
• Threshold calibration considers volatility, peer performance, and risk appetite
• Scenario analysis estimates effects of recession, withdrawals, and rate shocks
• Reverse stress testing identifies conditions that threaten bank viability
• Monitoring dashboards distinguish leading indicators from lagging confirmation measures
• Escalation protocols define reporting recipients, response deadlines, and intervention actions

Participants can build, review and present a complete bank examination and financial analysis report.

• Case-bank profile synthesised from financial statements, prudential returns, and management information
• Ratio analysis identifies earnings, asset-quality, liquidity, and capital concerns
• CAMELS-style ratings supported by documented evidence and forward-looking judgement
• Priority findings drafted with root causes, risk ratings, and corrective actions
• Examination report reviewed for factual accuracy, consistency, and decision usefulness
• Senior-stakeholder presentation defends conclusions, priorities, and proposed supervisory response