This convenient online program is ideally suited to those who are new to banking – both frontline staff and those newly hired to leadership positions who gained their experience in other industries. Learn the language of banking, including an understanding of key ratios, to gain a clearer understanding of how the bank functions as a business.

The program is split into two parts:

• Part 1 – Risky Business – An overview of the business of banking, industry trends, with an emphasis on risk management using the “Big 5” Risks for Banks as our tour guide: Credit Risk, Market Risk, Liquidity Risk, Operational/Legal Risk, and Regulatory/Reputation Risk.
• Part 2 – An Open Book – to a Degree – Using the same tour guide as above, Participants will learn to look up their own bank’s key performance management ratios, comparing to FDIC peer group and national averages.

Topics include:

• How a bank makes and loses money
• An overview of a bank’s balance sheet and income statement
• The importance of your bank to the local economy using the money multiplier as an example
• Risk arbitrage for both borrowers and depositors
• Enterprise Risk Management (ERM)
• Industry trends and current conditions
• How to manage each of the “Big 5” risks with examples and stories
• 4 key areas of bank financial management
• How to look up and use bank ratios (with UBPR and SDI tools provided)
• Overview of CAMELS and regulatory enforcement actions, and,
• How to ‘thrive’ in a recession

The following ratios will be explained: ROA, ROE, Efficiency Ratio, Past Dues, Non-Accruals, Charge-offs, Loan Loss Reserve level and coverage, Spread/NIM, Loan-to-Deposit Ratio, Core Deposit Funding, and Equity Capital Ratio.
Participants will receive their bank’s UBPR (Uniform Bank Performance Report)