The Credit Crisis and Basel III
The credit crisis, liquidity problems, securitisation, bad debts, the interbank market, bank capital, credit derivatives – all of these became headline news as banks worldwide went through their worst crisis in 80 years.
As a result of the crisis, regulators have created a new system for measuring the strength of banks’ capital and liquidity – Basel III. This will require banks to strengthen their reserves of capital and liquidity – at a cost.
ACF’s Global Banker simulation already features the new Basel III liquidity and capital measures, allowing delegates to experience at first-hand how they work in a completely realistic environment. The results are surprising – Basel III will potentially cut bank profitability by almost 40%.
Never before has it been so important for bankers – at all levels and in all roles – to understand the complexities of banking in the 21st century, to be aware of how their role fits in, to comprehend the big picture, and to identify problems before they become serious.
ACF’s Global Banker seminar does just that. Using realistic and detailed scenarios, the seminar shows delegates how to develop effective solutions to today’s problems and strategies to ensure that their bank maintains profitability.
The Global Banker Seminar
Over an intensive three day period, delegates will:
- Obtain a detailed overview of total bank operations – seeing clearly how everything fits together
- Appreciate the impact of Basel III on commercial bank operations
- Establish how to restore profitability through the design and execution of successful strategies – taking into account the need for liquidity and capital in a Basel III world
- Identify and analyse a bank’s exposure to the various sources of risk – and how to design strategies to control risk within acceptable bounds
- Appreciate the dynamics of commercial banking exploring the interactions between funding, lending, liquidity, and capital
- Assess how derivatives like interest rate swaps and credit default swaps can enable banks to manage their exposure to interest rate and credit risk – but to be aware of counterparty and mark-to-market risk
- Explore how successful securitisation can help banks manage their balance sheet
- Understand asset and liability management concepts – and how they affect day-to-day decisions throughout the bank
- Broaden the breadth and depth of their banking knowledge – learning about and gaining first-hand experience within each major area of the bank
After using Global Banker, delegates will gain a remarkable understanding of each of the principal functional areas within a bank, and see clearly how these areas successfully integrate together.
Delegates will learn to recognise the wider impact of their actions, and will be able to apply more astute judgement in the execution of their decisions. Instead of a blinkered outlook, delegates will have a panoramic view. Instead of copying the competition, delegates will devise creative strategies. Instead of reacting to problems, delegates will identify potential obstacles and implement pro-active tactics to circumvent them. In short, delegates will be able to make better, more profitable, but safe decisions, to the material advantage of the bank.
In an ever more complex and risky world, Global Banker will help delegates achieve the critical edge.
Global Banker will be of tremendous benefit to any bank officer who needs to understand the “big picture”. At first sight, some may think this would only apply to top management, but such a belief would be mistaken. Anyone whose decisions affect the bank – whether at branch, divisional, or head office level – will certainly derive tangible benefit from the experience.
For example, a corporate lender assessing loan profitability will learn not only to look at the straight margin over cost of funds, but to take into account the bank’s cost of capital, liquidity servicing costs, income from related services, bad debts, and operational costs as well.
Those for whom the simulation will be particularly relevant include:
- Middle-management and senior bank executives
- High-flyers on accelerated development programmes
- Country, regional, and senior branch managers
- Credit and corporate finance officers
- Domestic and international managers
- Treasury staff
- Strategists, planners, and those actually responsible for asset and liability management
- Operational, support, and other head-office personnel
- Regulators responsible for monitoring the operations of a large bank
- Government personnel involved in overseeing financial institutions
What is Global Banker?
Global Banker is a sophisticated bank management simulation designed to provide delegates with a unique insight into almost every aspect of commercial banking. Combining a strategic overview with in-depth analysis of each decision area, Global Banker is ideal for everyone who needs to master the business of banking.
Global Banker provides an unparalleled opportunity for delegates to unravel the complexities of commercial bank operations. Deeper knowledge coupled with a wider perspective will ensure that delegates will be better placed to make the key decisions of tomorrow.
An intensive research and development effort has ensured that Global Banker is the world’s most advanced strategic bank simulation. The latest scenarios incorporate the Basel III framework, including the new set of capital and liquidity requirements. Right now delegates can experience what life will be like when Basel III is phased in over the period 2013-2018, and learn to develop strategies to maintain profitability within a much stricter regulatory regime.
The scope of delegates’ decisions, the breadth and depth of financial and operating reports, and the sophistication of the management information and analysis systems, all combine to create a realistic and highly motivating simulation environment.
How does Global Banker Work?
Global Banker integrates a series of briefings on core topics with a highly sophisticated bank management simulation. This combination of theory and practice produces the most effective and highly stimulating learning environment, and ensures that delegates can immediately put their learning to the test.
Delegates spend much of their time during the seminar working in teams, acting as the top management of a large commercial banking operation, operating in an environment of funding pressure, demand for credit, and aggressive competition. They plan and manage each major area of banking activity in both retail and wholesale markets, eventually arriving at a comprehensive set of top-level decisions. These decisions are analysed by the suite of sophisticated computer models, which produce comprehensive reports on which delegates can base their next set of decisions.
By assuming direct responsibility for all the principal banking functions, delegates learn through first-hand experience. Decisions are made and the results are presented immediately, providing instant feedback revealing the effectiveness of those decisions. In this way, delegates gain a profound understanding of the subject matter, and can thoroughly test the knowledge they have gained at every stage.
Lawrence Galitz has a global reputation as one of the best seminar leaders in the field of banking, finance, and ALM.
A dynamic and gifted trainer, with wideranging knowledge and experience, he is exceptionally skilled in the art of knowledge transfer. He has extensive experience in this area and has consulted for a wide range of commercial and central banks. He was also the headmaster of the Insurance, Bank and Finance Studies in the University College, University of Wales, Bangor, UK.
DATA: 11 – 13 April 2012
IFB – The Portuguese Bank Training Institute
Av. 5 de Outubro, 164, 1069-198 Lisbon, Portugal
CERTIFICADO: All participants will receive a certificate.
Ana Margarida Soromenho
Av. 5 de Outubro, 164, 1069-198 Lisboa, Portugal
Tel.: (+351) 217 916 274 Fax: (+351) 217 977 732
ACF Consultants, based in London and New York, has an established reputation for providing first rate training and consultancy to banks and other financial institutions, in the areas of banking and finance, and are global leaders in the development of financial simulations and the application of innovative technology-based training techniques.
ACF Consultants set exacting standards. Only employ consultants who have wide-ranging and relevant experience, coupled with exceptional teaching and communications skills.