Corporate Banking Masterclass

Lending to corporate customers presents one of the greatest opportunities for commercial banks to pursue growth and profitability; at the same time it ties up a large amount of economic capital and represents substantial credit risk. This course is designed to give delegates a comprehensive overview of how to build a successful corporate banking strategy and how to raise the performance of their institution. It applies to banks in developed and emerging markets. The course will teach how to use the planning process to set goals, to control costs and to increase the profitability of clients and sales channels. The course will give hands-on examples of how to create value by implementing efficient credit decisions and procedures. Finally, participants will assess the main risk factors in corporate banking; they will learn how to mitigate these risk factors and to use an effective portfolio management.

Course Objectives

A comprehensive training strategic management course for banking experts that will help you to:

• Implement a successful corporate banking strategy
• Use the planning and budgeting process to increase the value of your bank and control cost
• Build a competitive sales organization and increase your cross-selling rate
• Introduce risk adjusted and minimum pricing
• Apply standard risk cost, economic capital, RAROC and EVA
• Improve the credit decision process
• Implement an effective risk limit system

Who Should Attend?

We strongly advise the following financial professionals attend

• CEOs & CFOs
• Credit and Risk: Management Executives
• Corporate Banking and Corporate Finance Experts
• Heads of Regional Banking and Branches
• COOs and Controllers
• Executive consultants responsible for Corporate Strategy and Planning

Course Outline

Module

• Welcome and Introduction
• Program overview
• Delegates’ expectations
• Strategies in corporate banking
• The competitive landscape in developed and emerging markets
• Different strategies in corporate banking
• Competitive advantages in emerging markets
• The profitability of banking products
• The key success factors in:
• Corporate banking
• SME banking
• Retail banking
• The importance of the planning process
• Mission and vision statements
• Setting SMART objectives
• Principles of a successful planning
• Defining financial and performance goals for each level
• Profit goals
• Market goals
• Product goals
• Cost targets
• The execution of the planning process
• Corporate banking
• SME banking
• Retail banking

Module Two

• Building an efficient branch network
• Defining strategic business units
• Successful client segmentation
• Designing the national branch network
• Delivering corporate finance and capital markets products
• Building an efficient international banking business
• Effective client management
• Client relationship management
• Improving cross selling
• Dealing with loss leaders
• Calculating the client profitability
• Managing the matrix organization

Module Three

• Building a competitive product range
• From corporate lending to cash flow based lending
• The introduction of corporate finance and investment banking products
• Understanding structured banking products
• From general lending to cash flow based financing
• Defining structured and transactional products
• Asset based lending
• Investment banking services
• How to build a portfolio of structured products
• Measuring product and client profitability
• Introduction to the different concepts of measuring success and profitability
• Revenues / volume / risk-weighted assets
• Regulatory capital
• RAROC and RORAC
• EVA
• Understanding
• Standard risk cost and expected losses
• Unexpected losses
• Economic capital vs. regulatory capital
• Establishing the minimum price for banking products
• Factors influencing the price of banking products
• Calculating the client’s profitability

Module Four

• Mastering credit risk
• Introduction to risk in corporate banking
• Developed markets
• Emerging markets
• How Basel II has changed the perception of risk
• Defining ratings for corporations
• Qualitative assessment
• Quantitative ratios
• Defining ratios for structured lending products
• Understanding covenants
• Establishing an early warning system
• The treatment of impaired loans / the workout process
• Improving the credit decision process
• Segregation of duties in the loan underwriting process
• Defining the appropriate approval level for loans
• The governance of credit committees
• Alternative route: credit decision by an expert system
• Joint portfolio responsibility
• Reducing costs in the credit decision process

Module Five

• Understanding operational risk
• Level of operational risk
• Risk indicators
• Assessing operational risk
• How to avoid operational risk
• Introduction to portfolio management
• Role and responsibility of the risk management department
• Establishing risk - limit systems
• Introducing a loan transfer system
• Applying risk mitigating factors by active portfolio management
• Establishing a value creating Management
• Information System