Course aims

The aim of this course is to give delegates a structured and consistent approach and set of tools to allow them to analyse the creditworthiness of banks.

Over two days, we will review the core disciplines involved in bank credit analysis. A critical element of this will be a review of the regulatory framework and the key regulatory risk and capital measures used to limit the risk profile of banks. We will also review the uncertainty still surrounding key elements of the Basel III framework.

This bank credit analysis training course critically reviews the risks associated with different banking operating models and segments, such as investment banking and retail banking. Delegates will also be introduced to the complexities and particularities of bank reports and accounts and taught how to measure financial risk in banks.

No training programme would be complete without a review of recent history of bank failures and of the early warning signs of distress. We will also review the impact of sovereign risk and implied parental and regulatory support on ratings. Delegates will carry out a series of analytical exercises and case studies and develop a rating of a listed but unrated bank.


Course Objectives

At the end of the course, delegates will:

  • Have a clear, structured, consistent analytical framework and set of analytical tools to apply to day-to-day credit analysis;
  • Understand the key elements of the Basel III framework and the key risk metrics;
  • Have a clear understanding of the importance of strategy and the business model of a bank in establishing its credit quality and a good insight into the leading indicators of corporate failure;
  • Be able to clearly explain the rationale for imputing parental and regulatory support in adjusting a banking units standalone credit rating; and
  • Be able to constructively participate in documentation and structuring dialog.



  • Credit analysts
  • Debt fund managers
  • Trainee bond and credit analysts
  • Investment professionals
  • Corporate treasurers
  • Finance directors


Course content

  • Financial reporting – the key components of a bank balance sheet and income statement
  • Ratio analysis – what key risk and quality metrics drive ratings? What ratios give us insight into competitive strength?
  • Basel III and the definition of regulatory capital and the impact on credit strength of using different sources and types of capital
  • Financial metric normalisation – key adjustments for leases, pensions, JVs and associates
  • Why do banks fail – early warning signs
  • Adjusting for external support and sovereign and regulators