Core Classes | Second Year Students
The second year curriculum is comprised of half core (or required) courses and half elective courses and concentrates on development of problem-solving tools and skills, which are applied to practical management issues faced by financial institutions today. Students self-select into an appropriate credit course.
CREDIT ANALYSIS:
The second year core courses involve two options for credit courses, one of which will be most appropriate for your level of experience in this area:
OPTION 1 - Credit Analysis: Practical Ways to Analyze Commercial Borrowing Relationships
The class centers on making and administering commercial loans and lines of credit with an emphasis on analyzing and structuring the credit relationship based upon the borrower's cash flow and their ability to repay – not the value of the collateral. It explains in an easy-to-understand way, how a bank's lending culture impacts the way a loan is analyzed and structured, then shows how the dynamics of sales growth, asset turnover, expense control and loan structure all interrelate. The class presents simple, practical and effective tools and concepts useful for virtually all levels of experience. This course is a great choice for those wishing to become more comfortable and effective at analyzing business borrowers (both cash and accrual) and learning how to better define, develop and negotiate a lending strategy. Students utilize mini-exercises and short middle-market case studies to become more familiar with the tools and concepts discussed throughout the course.
Designed for those involved in corporate or commercial lending, and for those who wish to strengthen their analytical abilities, areas covered include cash flow analysis, loan structuring, ratio analysis, determining sustainable growth ptential, identifying liquidity needs, establishing financial covenants, and developing a lending strategy. The audience may include bank examiners, commercial lenders, relationship/calling officers, loan committee members, and those comfortable with basic accounting and financial terminology who want to learn some effective and practical tools to better understand and communicate with commercial borrowers.
OPTION 2 – Credit Analysis: Making the Commercial Credit Decision
Credit risk management occurs at the level of a loan officer meeting with a potential borrower. The outcome of that meeting will have an impact on the institution's asset quality and financial performance. This course focuses on the activities associated with qualitative and quantitative analysis when meeting with a commercial borrower. Once the analysis has been completed, the real work of risk management begins. The credit must be structured, risk rated, priced, documented, monitored and managed to achieve the best possible outcome for the institution.
Course activities will include homework assignments around case studies, small group exercises, large group discussion, lecture, and a practical application. The intent is to provide the tools to perform a credit analysis and then create an opportunity to apply those tools to determine a credit decision. Recommended participants are those who are do not have a direct involvement with credit, but want to know more about the process.
OTHER REQUIRED CORE COURSES:
Regulatory Speaker Series
Our industry is recovering from the most significant crisis in recent history. The bank regulatory structure continues to present challenges, demanding adherence to strong guidelines enforced by several federal agencies. The Regulatory Speaker Series engages experts in the regulatory field who will address our current agency structure, enforcement of critical statutes and insurance issues, and the Federal Reserve System, with attention given to tools which control the money supply. Speakers include a leading authority on Financial Services Regulatory Issues and a Vice President of the Federal Reserve Bank of San Francisco. Additionally, participants will have a lengthy opportunity for candid, interactive dialogue with prestigious representatives from the OCC and the Washington Department of Financial Institutions. The course concludes with an expert on ethical considerations and strategies that must be in place to comply with laws and regulations in the future.
Managing Bank Financial Risk
Critical implementation of funds management policies and strategies to manage a financial institution’s net interest margin are addressed in this course. Also focused on is protecting the market value of the institution by achieving liquidity, interest rate sensitivity, and profitability goals. All asset and liability accounts are discussed as well as funding needed to meet the liquidity, interest rate sensitivity, capital, and profitability goals of the financial institution.
Transfer pricing methodologies are developed to better understand the financial opportunities on both the asset and liability sides of the balance sheet. Presentation of on- and off-balance sheet interest rate sensitivity hedging opportunities highlights the impact of money market and monetary policy changes on the financial institution's balance sheet. An overview of the securities portfolio as an important income-producing asset is presented, as well as it being a tool for managing interest rate sensitivity risk.
Discussions deal with the impact of the money markets and Federal Reserve monetary policy changes on bank assets and criteria developed for selection of an appropriate asset/liability mix for a given institution given various interest rate scenarios. Because this class is presented as an overview to the implications to the balance sheet and income derived from decisions made within a financial institution, it greatly enhances the student's ability to understand and make better management decisions for their institutions in the future.
A list of Elective Courses can be found on the Second Year Elective Course List.
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