Financial Institution Analysis - CAMELS Approach

Highlights

Overview
This product assesses different aspects of commercial banks operations to determine the soundness of its condition. The courses describe the methodology used by examiners to assess these factors and the criteria for assigning ratings to a bank. With the help of a case study, the courses demonstrate the method of identifying risks in internal processes, the evaluation of these risks, monitoring procedures and internal controls. The case study guides us on how component ratings and composite ratings are assigned by examiners to a bank.

After completing this course you will be able to:

Understand qualitative as well as quantitative factors for evaluating financial institutions
Identify various risks faced by financial institutions
Analyze financial institutions and assign overall ratings

Target Audience
Every professional involved in the global financial services industry (as a provider, user, regulator or advisor of product/services, marketplace/exchange) would benefit from KESDEE’s innovative solutions.

Supervisory Agencies

Central Banks

Financial Institutions

Commercial Banks

Investment Banks

Housing Societies/Thrifts

Mutual Funds

Brokerage Houses

Stock Exchanges

Derivatives Exchanges

Insurance Companies

Multinational Corporations

Accountancy Firms

Consultancy Firms

Law Firms

Rating Agencies

Multi-lateral Financial Institutions

Others

Course Level and Number of Courses
Intermediate Level. Library of 8 Courses

Instructional Method
Dynamic, Interactive e-learning

Recommended Background
Familiarity with basic financial concepts

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http://www.kesdee.com/coursedetails.jsp?productid=69&groupID=2

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Library of 8 Courses

Financial Institution Analysis - CAMELS Approach
Time taken to complete each Course: One - Two hours

1. Overview of CAMELS

Introduction to CAMELS
CAMELS (description of each component)
Purpose of a rating system
Case study

2. Earnings Ability

Different components of earnings
Importance of earnings to a bank’s financial condition
Different earning ratios on a UBPR

3. Capital Adequacy

The purpose of capital
Factors for evaluating capital adequacy
The measurement of capital
Prompt Corrective Action

4. Asset Quality

Concept of asset quality
Impact of asset quality on bank’s financial statements.
Concepts of past-due and non-accrual loans
Analyzing asset quality ratios
Asset classification and types of asset classification
Rating of asset quality
Adequacy of allowance for loans and leases losses (ALLL)

5. Management Competence

Management organization and function
Assessment of management
Evaluation factors and ratings
Case study

6. Liquidity Risk

Liquidity risk
Liquidity management
Factors for evaluating liquidity
Ratings
Case study for analysis

7. Sensitivity to Market Risk

Components of market risk
Identifying areas sensitive to market risk
Measuring Interest rate Risk
Evaluating and rating sensitivity to market risk

8. Composite Rating

Composite rating guidelines
Summary of component ratings
Assigning a composite rating to the case bank.

JOB AIDS

Measurement Tools
Benchmarking Data

Calculator in Financial Institution Analysis - CAMELS Approach

1. Bank Ratio Analysis

Available Products

Upcoming Products

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visit us at www.kesdee.com

Financial Institution Analysis - CAMELS Approach

The themes of this product are: