Course

Course Summary
Credit Type:
Course
ACE ID:
ABAN-0181
Organization:
American Bankers Association
Location:
Classroom-based
Length:
25 weeks (70 hours)
Dates Offered:
Credit Recommendation & Competencies
Level Credits (SH) Subject
Upper-Division Baccalaureate 3 Business Administration or Business Management
Upper-Division Baccalaureate 3 Finance or Money and Banking
This course is recommended for a total of 6 semester hours at the upper-division baccalaureate degree category.
Description

Objective:

The course objective is to provide all of the tools needed to analyze a bank's financial performance; measure and manage a bank's interest rate risk, as well as how to manage the funding, liquidity, and capital functions within the bank; and provide the key concepts needed to effectively manage the bank's portfolio. It is comprised of four component courses: Analyzing Bank Performance, Managing Funding and Liquidity, Managing Interest Rate Risk, and Managing the Bank's Investment Portfolio.

Learning Outcomes:

  • Use the Uniform Bank Performance Report to analyze their bank's performance over time and compare that with other banks
  • Analyze the profitability of various lines of business within the bank using a variety of measures
  • Identify the determinants of the overall level of interest rates
  • Evaluate the costs and risks of different sources of capital
  • Prepare a capital management plan
  • Identify all of the elements that should be included in the bank's investment policy and formulate such a policy
  • Evaluate total return and option-adjusted spreads on instruments with prepayment risk
  • Identify the key balance sheet and income items for a bank
  • Utilize the concepts of economic value added and the balanced scorecard in assessing their bank's performance
  • Evaluate customer profitability within the bank
  • Assess the impact on interest rate risk of various pricing, investment, and funding decisions
  • Use a range of derivatives to manage interest rate risk, including futures, forwards, interest rate swaps, caps, floors, and collars
  • Apply all of these concepts to the management of interest rate risk in their own institution
  • Evaluate the costs of various funding sources and their impact on profitability
  • Evaluate the impact of various funding sources on interest rate and liquidity risk
  • Use various measures to evaluate liquidity risk
  • Identify optimal capital levels from both the regulators' and shareholders' point of view
  • Identify the key characteristics of common investment instruments and calculate the yield on those instruments
  • Describe regulatory and accounting restrictions on the bank's investment portfolio
  • Compare the benefits and risk of various investment strategies
  • Evaluate the comparative return of taxable and tax-exempt securities

General Topics:

  • Analyzing bank performance, managing interest rate risk, managing funding and liquidity, and managing the bank's investment portfolio
Instruction & Assessment

Instructional Strategies:

  • Audio Visual Materials
  • Computer Based Training
  • Discussion
  • Practical Exercises

Methods of Assessment:

  • Quizzes

Minimum Passing Score:

70%
Supplemental Materials