The Capital Markets School provides attendees a comprehensive asset-liability management course which utilizes a combination of instructor presentations, in-depth group discussions, and specific practical examples to enhance capital markets knowledge and examination skills. The course is intended to explore both the technical and practical application of risk identification for community banks, mid-sized banks, and large banking organizations. The instructor team, comprised of seasoned examiners with industry experience, will cover topics including balance sheet structure, yield curve analysis, investment portfolio composition and analysis, liquidity, interest rate risk, mortgage banking, asset securitization, and derivatives, with discussions of relevant regulatory guidance and risk management practices. While this course does not specifically cover topics such as bank capital structures, debt and equity issuances, or capital stress testing, the instructors will work to address any topics of participant interest during the presentations and/or breakout sessions.

Classroom based learning through instructor presentations, break-out sessions, group discussions, and applications-based exercises.

Upon completion of this course, attendees are able to:

• Assess the institution’s balance sheet structure and risk profile given its size and complexity
• Evaluate management’s ability to identify, measure, monitor, and control market and liquidity risk
• Discuss regulatory and risk management issues with management and the board of directors using sound judgment and applying appropriate safety and soundness principles

TIME COMMITMENT:

• Pre-requisite: Attend the Examiner-in-Charge School or equivalent; minimum 4 years of examination experience.
• Pre-Course Work: None
• Resident Session: 4.5 days
• Post-Course Work: None

Examiners with at least 4 years of experience dealing with investments, interest rate risk, liquidity, and related capital markets topics, or more experienced examiners that work with these topics as a supervisor or in the Report of Examination review process.