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CITIBANK SCHOOL OF BANKING

Organization Directory Page

• Organization description

• Source of official student records

• Titles of all evaluated learning experiences

• Descriptions and credit recommendations

Part of the Citicorp Global Finance sector in the Institutional Bank, the School of Banking serves the training needs in credit, corporate finance, and non-credit courses in the Financial Institutions sector, as well as the needs of its clients worldwide.

Source of official student records: Director, Latin America Training and Development Center - School of Banking, 899 West Cypress Creek Road, 7th Floor, Ft. Lauderdale, Florida 33309.

Titles of evaluated learning experiences

Financial Institutions Risk Analysis
Fundamentals of Credit Analysis
Risk Management I: Fundamentals of Credit Analysis
Risk Management II-Credit Risk Analysis and Management
Risk Management III -Special Topics in Corporate Finance and Merchant Banking
Risk Management IV -Advanced Credit Strategy

Descriptions and credit recommendations

Financial Institutions Risk Analysis
Location: Citibank School of Banking, One Court Square, Long Island City, NY.; client locations.
Length: 53 hours (6 days).
Dates: December 1991 - December 1995.
Objectives: Describe and distinguish the primary roles, interrelationships, and economics of commercial banks, thrifts, insurance companies, and underwriting brokerage firms; relate the major management functions within a financial institution and their impact on the future well-being of the institution; discuss the importance of the credit process and culture as they relate to the student’s institution; and analyze a financial institution client and present recommendations to a senior credit officer.
Instruction: The major focus of the course is to develop a comprehensive and consistent framework for analyzing financial institutions, especially for preparing and reviewing credit applications and structuring credit extensions. Complex case studies are used to reinforce teaching points. Several case studies are assigned to course participants for team preparation and class presentation. Participants are assessed daily on their knowledge of course materials, participation and presentations. The course covers a risk analysis framework for financial institutions in four principal segments: preliminary analysis; repayment source analysis; credit packaging; and risk management. Special emphasis is given to the composition, relationship and interdependence of each segment. The need to identify future internal and external factors critical to the success of the institution is stressed. Topics include industry overview (commercial banks, thrifts, insurance companies, and broker-dealer firms); credit decision process; preliminary screening and identification of use of funds; industry and business risk analysis; statement spreading; financial statement analysis including special emphasis on asset quality, earnings, liquidity, asset and liability management and non-financial institution activities; business cycle risk analysis; projections; summary and recommendation; structuring; negotiation; credit monitoring; country analysis and cross border risks; linkage of management strategies planning for profitability; sources of information; points to cover in a credit memorandum; presentation of a credit package to a senior credit committee. (Prerequisite: Fundamentals of Credit Analysis or equivalent experience background.)
Credit recommendation: In the graduate degree category, 2 semester hours in Finance in a Masters in Business Administration or equivalent degree program (2/91).

Risk Management I: Fundamentals of Credit Analysis
(Formerly Fundamentals of Credit Analysis)
Location: Citibank School of Banking, One Court Square, Long Island City, NY.; client locations.
Length: Version 1 or 2: Approximately 90 hours of classroom instruction (4 weeks); in addition, approximately 70 hours of supervised team work (4 weeks).
Dates: Version 1: February 1988 - January 1993. Version 2: February 1993 - December 2007.
Objectives: Version 1 or 2: Use fundamental principles of financial accounting in decision-making; describe the relationships between financial reporting and the underlying business activities; analyze financial statements; evaluate funds flow in the context of industry and economic conditions; use financial statements as a tool for investment and credit decisions; assess the risk of a company’s strategies given its financial condition and competitive ranking.
Instruction: Version 1 or 2: Significant pre-course readings and assignments involving the completion of a programmed text in essentials of accounting is required. A college-level intermediate accounting text is covered, as well as supplementary readings in Finance. Annual reports and complex cases are used to illustrate current and relevant financial accounting practices and credit analysis issues in corporate financial statements. Topics covered include basic concepts of financial accounting, business risk and corporate strategy, asset valuation concepts, liability recognition, shareholder’s equity, revenue recognition, determination of quality of earnings, changes in financial statements, and financial statement analysis. Several case studies are assigned to students for team preparation and class presentation. In addition, daily homework involving extensive reading and preparation is assigned and  selected assignments are graded.
Credit recommendation: Version 1: In the lower division baccalaureate/associate degree category, 4 semester hours in Credit and 3 semester hours as an elective in Accounting in a non-CPA (Certified Public Accounting) curriculum or in the graduate degree category, 3 semester hours in Credit Analysis (Accounting) and 3 semester hours in Financial Accounting in a Masters in Business Administration degree program (7/88). Version 2: In the upper division baccalaureate degree category, 3 semester hours in Credit and 3 semester hours as an elective in Accounting in a non-CPA (Certified Public Accounting) curriculum or in the graduate degree category, 3 semester hours in Credit Analysis (Accounting) and 3 semester hours in Financial Accounting in a Masters in Business Administration degree program (6/93 revalidation) (5/98 revalidation) (10/03 revalidation).

Risk Management II-Credit Risk Analysis and Management
Location: Citibank School of Banking, One Court Square, Long Island City, NY; client locations.
Length: 80 hours (10 days).
Dates: September 1990 - December 1995.
Objectives: Structure transactions to minimize the risks identified in a credit request; identify the key legal aspects of the proposal and the loan documentation appropriate to the transaction.
Instruction: The major focus of the course is to develop and reinforce a comprehensive and consistent framework or discipline to follow when reviewing a loan application and in structuring credit extensions. Course participants are drilled in the logic of identifying critical risks and structuring the loan to mitigate those risks. Complex case studies are used to reinforce teaching points.
Several case studies are assigned to course participants for team preparation and class presentation. Participants are assessed daily on their knowledge of course materials, participation, and presentations. The course covers the four principal parts of a loan decision process: preliminary analysis, repayment source analysis, packaging/documentation, and loan management, including problem loan recognition. Topics include institutional credit process, credit decision framework, financial statement analysis, industry risk analysis, business risk analysis, business cycle analysis, projections, sources of information, loan structuring, commercial loan documentation, specialized industry decision framework, credit presentations, loan monitoring and administration. Course participants use a personal computer as a tool to assist in the analysis of credit, the development of projections and the creation of covenants. (Prerequisite: Fundamentals of Credit Analysis or equivalent background.)
Credit recommendation: In the upper division baccalaureate degree category, 3 semester hours in Finance in a Business Administration or equivalent degree program or in the graduate degree category, 3 semester hours in Finance in a Masters in Business Administration or equivalent degree program (2/91).

Risk Management III -Special Topics in Corporate Finance and Merchant Banking
Location: Citibank School of Banking, One Court Square, Long Island City, NY.; client locations.
Length: 50 hours (10 days).
Dates: May 1991 - December 1995.
Objectives: Perform financial markets calculations, including present and future values, bond prices and yields, foreign exchange and swaps, and internal rate of return (IRR); employ capital asset pricing model (CAPM) and variations, such as levering and unlevering betas; calculate values, based on various discounted cash flow (DCF) approaches and other approaches; follow due diligence standards; employ structuring and restructuring techniques; apply financial risk management techniques.
Instruction: This course examines the factors contributing to shareholder value creation (SVC), when return on equity exceeds the cost of equity, from the perspective of the chief financial officer. The course presents concepts in an analytical framework (CAPM, leverage decisions, hedging, strategic positioning, valuation alternatives, and structuring) and develops these concepts through a series of case studies. The central theme of economic value creation is stressed throughout. Topics include shareholder value creation, leveraged and management buy outs, due diligence, financial restructuring, risk management products, merchant banking issues. (Prerequisite: Fundamentals of Credit Analysis or equivalent background.)
Credit recommendation: In the graduate degree category, 2 semester hours as Special Topics in Corporate Finance and Merchant Banking (2/91).

Risk Management IV -Advanced Credit Strategy
Location: Citibank School of Banking, One Court Square, Long Island City, NY.; client locations.
Length: 50 hours (10 days).
Dates: November 1990 - December 1995.
Objectives: Underwrite new credits with more effective covenants and structure; assess viability and liquidation options for troubled credits, and select the strategy best suited to recovery; propose alternative restructuring plans; and use a proprietary computer-based analytical and forecasting model.
Instruction: This course emphasizes remedial loan identification and management issues and techniques. The lessons from current loan problems are applied to future underwriting. Also covered are aspects of the lender liability cases affecting current bank lending practices. Complete case studies are used to reinforce teaching points. Several case studies are assigned to course participants for team preparation and class presentation. Participants are assessed daily on their knowledge of course material, participation, and presentations. Topics include crisis symptoms, problem loan management, bankruptcy and reorganization, computer-based credit model for analysis and projections. (Prerequisites: Risk Management II and Risk Management III or strong equivalent background.)
Credit recommendation: In the graduate degree category, 2 semester hours in Finance in a Masters in Business Administration or equivalent degree program (2/91).

Updated 4/3/08

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