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Course Information

Banking fundamentals course is designed to provide individuals with a comprehensive understanding of the fundamental principles, practices, and concepts in the field of banking. This type of course typically caters to students, professionals, or anyone interested in gaining a solid foundation in banking operations, financial management, and related areas.

Course objectives

1. Understand the role and functions of banks
2. Interpret a bank’s balance sheet and Profit and Loss
3. Identify the key risk types facing banks
4. Interpret basic compliance issues
5. Evaluate key products offered by banks
6. Assess the Principles of Credit Applications

Target Audience

The program is designed for new hires in Retail Banking roles and staff in bank office functions and does not assume any prior knowledge.

Delivery Method

In-Person Classes

Course Structure

In person trainer-led sessions with engagement through individual and group activities, case studies, live chat features, and post MCQ assessment.

Course Outline

L01 Understand the role and functions of banks:

1.1 Understand the role of banks

1. What is a bank?
2. Function of a bank (Intermediation)
3. Different types of financial institutions:
   • Personal banking (retail and wealth management)
   • Business banking (corporate and Investment banking)
   • Principle based banking: Ethical, ESG
   • Fund management
   • Specialized financial services

1.2 Understand the difference between Front, Middle and Back-office functions.

1.3 Understand the role of the different institutions in the financial services infrastructure:

1. Global Regulators (BIS, FATF, IOSCO, ISDA)
2. Central Banks
3. Other local regulators in financial services
4. Exchanges

L02 Interpret a bank’s balance sheet and Profit and Loss:

2.1 Interpret the main components of a typical bank balance sheet and distinguish between assets and liabilities:

1. Introduction to the Balance Sheet
2. Assets and liabilities

2.2 Understand how banks are funded:

1. Customer deposits
2. Capital
3. Equity and other long-term liabilities

2.3 Analyze a bank’s Profit and Loss / Income statement:

1. Different types of income (interest, fees)
2. Different types of cost
3. Bank profitability (net income, cost of capital, operating cost)

L03 Identify the key risk types facing banks, why and how banks are regulated and the importance of capital:

3.1 Assess the main types of risk that banks face and distinguish between different risk types:

1. Credit risk
2. Market risk
3. Operational risk
4. Liquidity risk
5. Regulatory risk

3.2 Understand the Basel capital requirements:

1. The importance of capital under the Basel regime
2. Purpose of Risk Weighted Assets
3. Purpose of Net Stable Funding Ratio
4. Purpose of Liquidity Coverage Ratio

L04 Interpret basic compliance issues:

4.1 Interpret the requirements for:

1. Know Your Customer
2. Due Diligence and Enhanced Due Diligence
3. Politically Exposed Persons
4. Anti-Money Laundering
5. Non-arm’s length relationships
6. Conflicts of interest

4.2 Be able to apply client risk appetite assessment.

L05 Evaluate key products offered by banks:

5.1 Understand different retail bank products and services:

1. Current accounts
2. Credit cards
3. Deposits
4. Overdrafts
5. Loans
6. Mortgages

5.2 Evaluate different private banking products and services:

1. Retail customers
2. Investment services
3. Portfolio and fund management
4. Asset allocation

5.3 Understand Fintech and digital disruption:

1. Crypto currency
2. Blockchain
3. Digital offering

L06 Assess the Principles of Credit Applications:

6.1 Understand the credit assessment process in retail and private banking:

1. Main life events impacting unlikeliness to pay
2. Credit bureau data
3. Behavioral scoring
4. Credit scoring versus behavioral scoring