The program consists of a combination of two parts: a conceptual and a practical part. The conceptual part includes discussions, case studies and exercises on several theoretical and practical aspects of financial and general management in a universal bank. During these conceptual sessions our trainers share their real banking experience with participants. The practical part includes the use of the BankSim banking simulation program. The computer based bank management simulation program depicts a typical full service universal bank. A number of banks compete against each other, creating a realistic banking environment. Participants experience the consequences of taking major management decisions within a given timeframe, called a “period”. Each period is the equivalent of three months (quarter of a year). The banks conduct various banking activities in order to grow their loans, deposits, investment portfolios and other businesses in the marketplace.
Objectives:To provide an understanding of the overall strategy of a bank.To gain insight into key decisions in banking.To understand the interdependence between business areas and the effect of decisions on financial performance.
Contents highlights:Mix between concepts and practice with practical implementation of concepts in BankSim Simulation.Concepts are given as traditional lectures for BankSim practical sessions.Participants are divided in small management teams.
The following specific banking activities are included in the simulation:Liquidity Risk ManagementCredit Risk ManagementDistribution Channel managementPrivate banking activitiesInvestment banking activitiesSavings-and Certificates of DepositsCapital Account Management following Basel I or Basel II regulationOff-Balance sheet items
The following quarterly results (output) are produced by the simulation program:Tutor Report;Bank’s own Financial Statements, comprising of: Balance Sheet, Income Statement, Notes to the FinancialStatements (including a Financial Analysis), Industry Report, Market Reports
The following banking activities can be enabled/disabled :Mortgages (Fixed rate & Variable rate)SecuritizationBranches (open/close) versus Fixed NetworkIssue of shares versus fixed amount of Share CapitalInvestment Portfolio (TBonds)Naked SwapsCredit DerivativesInvestment BankingRepos and Reverse Repos
Public target :Main target group: bank managers at decision levelOther target group: high potential staff in management area