Course description
March 2023 saw the two largest failures of banks globally since the financial crisis, Silicon Valley Bank in the US and Switzerland-based Credit Suisse Group, as well as two other US bank failures. This one-day course is designed to provide participants with an understanding of the causes of these failures to help them identify signals of potential problems at other banks.
Key Learning Outcomes:
- Understand the causes of the March 2023 failures of three US banks and Credit Suisse
- Anticipate the vulnerability of institutions to liquidity risk
- Understand the investment risk of Additional Tier 1 bonds
- Identify triggers or events from these case studies to monitor in other banks
Upcoming start dates
Suitability - Who should attend?
This is an intermediate level course for credit risk management, fixed income, origination and regulatory professionals who have an existing foundation level of financial analysis knowledge.
Training Course Content
Analytical Overview
This section provides a reminder of the regulatory capital liquidity and resolution frameworks for banks, the importance of managing interest rate risk and an overview of what usually causes banks to fail.
- Overview of the regulatory framework: Basel III capital requirements, recovery and resolution and Basel III funding and liquidity ratios.
- Interest rate risk in banks: maturity and interest rate gaps, price yield relationships and recent interest rate developments.
- Causes of bank credit deterioration/failure: business risk, financial risk and management/ownership.
Three US Bank Failures
This section looks into the causes of the failures of three US banks in March 2023.
- Overview of US bank regulation by category and explanation of the tailoring rules.
- Financial accounting of bonds, including how the balance sheet value of a government bond will differ depending on selection of accounting policy.
- Silvergate Bank: balance sheet development and cause of failure.
- Silicon Valley Bank: balance sheet development and cause of failure.
- Signature Bank: balance sheet development and cause of failure.
Credit Suisse Group
This section looks at the corporate governance issues at Credit Suisse Group that eventually resulted in its failure. It also covers the Swiss resolution framework and the write off of the bank’s Additional Tier 1 bonds ahead of full write-off of common equity.
- Overview of the bank’s business model and balance sheet development.
- Overview of corporate governance issues and why these were so problematic for Credit Suisse.
- The regulatory solution for Credit Suisse in the context of why a sale to UBS and write-off of AT1 bonds was selected instead of applying the resolution framework.
Why choose Fitch Learning
9 in 10 would recommend us to a colleague
Over 1,300 clients worldwide
CPD recognized
Request info
Fitch Learning
Part of the Fitch Group, Fitch Learning partners with clients to enhance knowledge, skills and conduct. With centers in London, New York, Singapore, Dubai and Hong Kong, we are committed to questioning and understanding client needs across the globe and...