Capital Markets Examiner School, Providence, RI

Course Objectives

 This course is not focused on traditional guidance presentations as they are adequately covered in other training venues available to examiners.  Guidance and regulations will be discussed where relevant. A working knowledge commensurate with the FDIC ALM School is assumed.  This course is aimed at intermediate to advanced level examiners and assumes familiarity with those topics.  Examples and exercises will be interspersed throughout the week in order to generate review and discussion of the covered topics.  The focus will also be on open discussions and questions and not on a guidance/analysis lecture approach.

Course Objectives

Focus is on liquidity, sensitivity and investments and related bank strategies in the formation of the balance sheet structure and approaches to managing exogenous shifts in a safe and sound manner.

 What do we mean by balance sheet structure?  Every bank’s balance sheet is largely a result of conscious decisions made my bank management

regarding the types and amounts of various assets, liabilities and equity.  i.e. The bank evolves as a result of bank strategies and customer demands & needs.  How does the bank monitor the evolution of its balance sheet relative to its goals?  Is risk control a properly represented part of this process.

 Exogenous changes occur in the economy and financial markets.  How well structured is the balance sheet to absorb these inevitable and unpredictable changes.  How well attuned and able is management to react to these changes from a structural and capability perspective.