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Public Course

Banks: Regulation and Valuation

Regular price $850.00 USD
Regular price Sale price $850.00 USD
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  • Overview
  • What you'll learn
  • What is a virtual classroom
  • Overview
  • Regulatory capital is a bank specific topic that is at the core of understanding banks’ business model and valuation. Delegates learn how to quantify regulatory capital available and risk weighted assets. The course concludes with a review of the key valuation methods for banks and delegates complete a dividend discount model of the case bank.

  • What you'll learn
    • Overview of the regulatory framework
    • Calculation of regulatory capital available: core tier 1, tier 1, and total capital and role of hybrid securities
    • Calculation of risk weighted assets: credit risk, market risk and operational risk
    • Minimum capital ratios and target capital ratios to maintain/achieve a target credit rating
    • Additional risk measures: leverage ratios based on common tangible equity
    • Extracting historical and forecasting future capital ratios for case bank
    • Calculating capital surplus/shortfall for case bank
    • Review of bank valuation methods: trading multiples vs. fundamental valuation
    • Bank trading multiples: P/E, P/BV, P/tangible BV and dividend yield
    • The dividend discount model
    • Cost of equity for banks
    • Forecasting potential dividends over explicit forecast period for case bank
    • Approaches to estimation of terminal value
      • Straight perpetuity formula and sensitivity to long term growth rates
      • P/BV and sensitivity to long term growth rates
    • Impact of the Basel III on banks valuation
  • What is a virtual classroom
  • Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. 

    Pre-Requisites

    Who should attend?

    New hires who have joined the firm late and missed the in-house program

    Individuals looking to fill a knowledge gap

    Experienced bankers looking to refresh their technical skills

    Teams employed in financial strategy roles from non-banking corporations

    Graduates preparing to interview for a role in the finance sector

    Students at business school and looking for a career in finance

    What to use

    You need to use a Windows-based laptop for the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class. Please inform us of your Excel version when booking your course.

    Ask our trainers

    If you have any questions about the course content, you can email our experienced trainers for any further questions

    Contact a trainer

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