Banks Capital Management: How to link risk, return and capital to maximize the bank’s value creation? by Jean-Bernard Caen

About the training

#capital   #economic capital   #financial risks   #IRBA   #basel   #ECL   #risk return   #RAROC   #EVA   #capital policy   #risk strategy   #pillar2   #correlations   #IRRBB   #credit risk   #regulatory capital

The purpose of this seminar is to give you a clear understanding of what is banks capital and how to use it to create value. Banks are currently managed using two desynchronized steering wheels: The regulatory framework that ignores profitability, and the accounting framework that – until recently – ignores risk. Economic Capital and IFRS 9, increasing competition from FinTechs and the need for a better servicing of the economy are promoting a review of how banks manage their capital. This seminar clarifies for you the issues and the practical ways to handle them. The three days are articulated as follows: On day 1, we clarify the nature of capital and its articulation with risk and return; On day 2, we learn how to measure economic risks so that the results are usable both for micro- and macro-management decision support; On day 3 we enter the internal mechanics of transferring funds and risks within the bank and still retaining the coherence required for proper performance assessment and the support of management actions.