Virtual Classroom

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Who should attend the course?

  • Individuals – looking to move into the real estate industry
  • New hires – who have missed a joining company in-house program
  • Teams – employed in real estate investment roles with non-finance backgrounds
  • Graduates - preparing to interview for a finance related role in the real estate industry
  • Students – at business schools looking for a career in real estate finance
  • Investment bankers (real estate industry teams)
  • Real estate analysts
  • Buy side (principal investors
  • Anyone interested in real estate investments

Course details

Introduction to banks

Through this session, the participants build a core understanding of the key value drivers and performance indicators for a bank. The financial statements of a bank are examined and analyzed to understand the major line items of the balance sheet and income statement. Regulatory capital requirements are also introduced.

 

Key topics:

  • How does a bank make money
  • Bank financial statements
    • Comparison with a corporate
    • Key items of the balance sheet and income statement
  • Role of regulatory capital
    • Available capital
    • Required capital
  • Key performance indicators
    • Loan book growth
    • Net interest margin
    • Cost/ income ratio
    • Loans/ deposits
    • Asset quality and cost of risk
    • Solvency capital ratios
  • Valuation overview

Fundamentals of regulatory capital

The aim of this session is to provide participants with an introduction to bank regulation. The regulatory environment is explained, and the key Basel accords are introduced.

 

Key topics:

  • Overview of regulatory framework
  • BIS and national implementation
  • Overview of Basel I, II and III
  • Overview of calculating available and required capital
    • Common equity Tier 1, Additional Tier 1, Tier 2 and Total capital
  • Overview of calculating risk weighted assets (RWAs)
    • Credit risk RWAs
    • Counterparty risk RWAs
    • Market risk RWAs
    • Operating risk RWAs
  • Overview of calculating regulatory liquidity and funding ratios
    • Liquidity risk and funding risk
  • Key capital ratios
    • Tier 1 and total capital ratios
    • Leverage ratios
    • Liquidity coverage ratios (LCR)
    • Net stable funding ratios (NSFR)

Financial statement analysis for banks

This session begins with an overview and recap of a bank's financial statements. After understanding the basics, the principles of accounting for financial instruments including loans and derivatives are explained, including loans and derivatives are explained.

Key topics:

  • Banks’ financial statements overview
  • Accounting for financial instruments
    • Fair value through profit and loss
    • Fair value through other comprehensive income
    • Loans and receivables at amortised cost
    • Fair value and amortized cost accounting
    • Level 1, 2 and 3 valuations
  • Accounting for loans and receivables
    • Incurred Loss vs. Expected Loss method (IFRS 9)
    • Stage 1, Stage 2 and Stage 3 categories of performance
    • Probability weighted contractual cash flows and the expected loss in default
    • Expected realizable value
    • Non-performing loans
    • Movement in gross loans and the allowance for loan losses
    • Understanding impairment expense vs. write-offs
    • US GAAP vs IFRS
    • Relationship between the allowance for loan losses and credit risk RWAs
  • Accounting for derivatives
    • Hedge accounting and fair value option
    • CVAs and DVAs
    • Netting derivative assets and liabilities: IFRS vs. US GAAP
  • On and off-balance sheet financing
    • Repos, reverse repos and securities lending
    • Accounting for securitizations
  • Key performance indicators for asset quality
    • NPL/ gross loans ratio
    • NPL coverage ratio
    • Cost of risk

""The virtual classroom was engaging and it felt like a classroom training"" ~ HR, International Investment Bank

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. For an example of the technical requirements of for our Virtual Classrooms click here.

Course trainers

Prerequisite

We recommend delegates have a solid understanding of financial statement analysis (balance sheet, income statement and cash flow) and financial modeling skills.