9 Class Hours

Instructor: Karl Nelson

Banking crises come infrequently in our industry but when they do occur, we tend to discover our strengths and weaknesses. With the Great Recession in 2008 and now the Pandemic of 2020-2021, our industry has been tested in ways never imagined. This most recent crisis is much different from the past one and we are witnessing many new and novel ways to combat an economy that is not created by underwriting errors but rather an outside influence not seen since 1918. We will review how this crisis was different and look into the impact it has had on our industry. We will also discuss how best practices led to very little concern over Liquidity during the past few years and dig deeply into the various liquidity risk management tools now in place. Deposit strategy continues to be the key focus for us, however, both a core deposit concept and a robust non-core or wholesale funding strategy are key to continued success. We will discuss how regulators see wholesale funding and dig deeply into the various techniques in use by our industry.

Course objectives include:

  • Develop a better understanding of the issues confronting our industry as we continue our recovery particularly as it relates to the issue of Liquidity.
  • Develop a clear understanding of how we measure Liquidity Risk focusing on both Ratio Analysis and a Contingency Funding Plan.
  • Develop core deposit concepts that can lead to more effective deposit growth.
  • Develop a clear understanding of the various non-core or wholesale funding concepts and how each is used to supplement a sound core deposit strategy.

Annual School Session

Second Year, First Week Elective Course

Financial Management Track