Regulation and Valuation
Regulatory capital is a bank specific topic which is at the core of understanding banks’ business model and valuation. Delegates learn how to quantify regulatory capital available and risk weighted assets. The course concludes with a review of the key valuation methods for banks and participants complete a dividend discount model of the case bank.
Suitability - Who should attend?
This training course is part of Bank Analysis and Valuation. Regulation and Valuation is suitable for professionals who work in or are:
- investment banking professionals
- relationship managers
- investment management
- wealth and asset management
- private banking
- portfolio managers
- research analyst
- insurance professionals
Delegates can also do Analysing and Forecasting Banks Performance module in conjunction with this course.
Training Course Content
- Overview of the regulatory framework
- Calculation of regulatory capital available: Core Tier 1, Tier 1, and total capital and role of hybrid securities
- Calculation of risk weighted assets: credit risk, market risk, operational risk
- Minimum capital ratios and target capital ratios to maintain/achieve target credit rating
- Additional risk measures: leverage ratios based on common tangible equity
- Extracting historical and forecasting future capital ratios for case bank
- Calculating capital surplus / shortfall for case bank
- Review of bank valuation methods: trading multiples v fundamental valuation
- Bank trading multiples: P/E, P/BV, P/tangible BV, dividend yield
- The dividend discount model
- Cost of equity for banks
- Forecasting potential dividends over explicit forecast period for case bank
- Approaches to estimation of terminal value Straight perpetuity formula and sensitivity to long term growth rates
P/BV and sensitivity to long term growth rates
- Impact of the Basel III on banks valuation
The cost for this Regulation and Valuation course is £650 + VAT per delegate.
It is important that you bring a laptop (preferably Windows based) with Microsoft Excel, Word and PowerPoint, and Adobe Reader installed.
AMT Training offer this training as an in-house option, or we can create a bespoke course tailored to your company. Please contact AMT to find out more.
AMT Training - Financial Modeling Courses
For over 20 years we have been equipping analysts and associates with core skills for banking and finance. Our clients include the top ten investment banks and some of the biggest private equity firms in the world. Throughout their careers,...
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