September 2024

Welcome to the latest edition of monthly Bearning newsletter, your go-to source for the latest insights and updates in banking. As usual, this issue features expert viewpoints, information on upcoming workshops, a special focus on our Slovak language sessions, and a fun quiz to test your industry knowledge.

1. Insightful Reads from the Banking World

Explore the newest trends and innovations in Asset & Liability Management, banking regulations, risk management, and beyond. In this section, you'll find a collection of recent articles, blogs, or podcasts offering insights from the world of banking.

• In our latest blog, Bearning CEO, Martin Macko, shares insights on the importance of quantitative planning for effective balance sheet management ?? and asset-liability management (ALM). We explain how moving beyond simple spreadsheets and adopting advanced tools (such as QuantPlan) can greatly improve bank’s ability to perform quantitative planning, scenario analysis, and interes rate risk and liquidity risk management. ?? Learn how advanced ALM solutions can enhance decision-making of bank managers and drive efficiency in today’s challenging financial landscape. You can read the full blog here ??: https://www.dhirubhai.net/pulse/best-practices-bank-balance-sheet-management-why-advanced-macko-wkqge/

• Check out our LinkedIn post where we discussed an insightful blog from the Bank Policy Institute (BPI) on the U.S. regulatory environment for large banks ??. The post highlights how stricter regulations don’t always result in a safer banking sector. Instead, regulations should be tailored to factors like bank size, complexity, and business models. We also touched on recent examples, such as the collapse of Silicon Valley Bank (SVB), and the role of Interest Rate Risk (IRRBB) regulation. For a deeper dive into this topic, read our LinkedIn post here ?? https://www.dhirubhai.net/posts/martin-macko-bearning_adjusting-regulatory-thresholds-for-economic-activity-7239210610805149697-ryDS

• We also discussed Europe’s economic challenges and their future impact in our LinkedIn post, referring to a blog by Oxford Economics that presents a concerning outlook for the EU economy. According to their analysis, Europe’s economic struggles are slowing down the global industrial recovery. With inflation remaining a key issue but growth decelerating, we raised the question of whether the ECB might opt for faster rate cuts if these trends persist. It’s a complex dilemma for monetary policymakers. What are your thoughts on potential rate adjustments? Check out here ??: https://www.dhirubhai.net/posts/martin-macko-bearning_ecb-pmi-activity-7244268288581545985-Yh0U
• We shared a recap of an insightful event hosted by SUERF - The European Money and Finance Forum titled "Do We Still Need Banks?" ??. The discussion provided valuable perspectives for bank financial and balance sheet managers, risk managers, and ALM/treasury experts, exploring the changing role of banks in today’s financial landscape. For a deeper dive, including access to the agenda and presentation materials, check out our LinkedIn post: https://www.dhirubhai.net/posts/martin-macko-bearning_do-we-still-need-banks-suerf-baffi-bocconi-activity-7237743915024490498-ZDqR

2. Workshops and E-Learning Updates

Explore Upcoming Bearning Sessions, Recaps of Recent Workshops, and E-Learning Offerings

• Many Bearning e-learning users have already downloaded our popular Excel model, SimBa (Simulated Bank). Now, you have an exciting opportunity to learn how to use it live and gain insights into how changes in bank products and balance sheets impact performance, risks, and regulatory obligations. Join our online course ??? Bank Management Live on October 15, 2024, 9:00 AM - 4:00 PM CET, where you'll master financial bank management using the SimBa model, guided by a professional lecturer. Watch a short video in our post to see what you can expect: https://www.dhirubhai.net/posts/bearning_bank-management-workshop-activity-7245052885388902400-oEv5 . Sign up ?? to enjoy pre-course e-learning chapters, earn a certificate, and participate in a 1-day live online session.

• At Bearning, we are committed to providing essential banking knowledge because Bearning stands for Bank Learning. That’s why our learning portal offers a wide selection of FREE e-learning courses for bankers ??! This is a fantastic opportunity to enhance your skills and grow into a true banking professional. Explore key topics such as bank strategy, financial management, controlling and profit calculation, quantitative planning, funds transfer pricing (FTP), asset and liability management (ALM), risk management, bank regulations, and more. ?? Start your free learning journey today at ?? Bearning.
• For EU bankers about Markets in Financial Instruments Regulation (MiFID II): Earlier this week, we conducted an in-depth MiFID II training for a leading bank in Vienna. The session covered the MiFID II regulatory landscape, financial market products, and investment services. With real-life examples, interactive quizzes, and engaging discussions, participants were highly involved and eager to apply their new knowledge in practice. Interested in organizing a MiFID II workshop? Find more details on our website ?? https://study.bearning.com/courses/mifid2-bank-regulation-live.

• We shared about Martin Macko's presentation at the Risk.net course on Trading Risk Management for Market Risk. During his two sessions, he covered 2 key topics: 1?? Understanding interest rate risk (IRR) measurement methods such as modified duration, convexity effect, PVBP, and scenario analysis, and 2?? Integrating trading risk into overall risk management strategies, focusing on internal controls, limit systems, and stop-loss/take-profit methods. For more insights, check out the full post on LinkedIn: https://www.dhirubhai.net/posts/martin-macko-bearning_irr-pvbp-trading-activity-7239995911282569216-dijy

3. Spotlight: Live Workshops in Slovak or Czech Language

Online Bearning kurzy na?ivo v slovenskom a ?eskom jazyku

Na na?om webe bearning.sk nájdete Bearning kalendár ?? verejnych online kurzov na jeseň 2024. Na?e workshopy sa zameriavajú na d?le?ité témy z bankovníctva, ako napríklad riadenie aktív a pasív (ALM), finan?né trhy, regulácie a riadenie rizík, privátne bankovníctvo a investovanie. Taktie? ponúkame ?kolenia zamerané na fintech a digitalizáciu, kyberkriminalitu, AML a dodr?iavanie regulácií (compliance). V?etky kurzy sú dostupné ako verejné online kurzy alebo inhouse ?kolenia pre in?titúcie. Podrobnosti a mo?nos? prihlásenia nájdete tu: ??

4. Banking Industry Quiz

Test Your Knowledge with Bearning Monthly Bearning Banking Quiz ?????

As we approach October, when we’ll be offering several courses on bank management, here’s a quiz question related to one of the key topics we’ll cover: balance sheet management and bond portfolio management and its impact on banking ratios and risks. Let’s see how well you understand this concept!

?When a bank purchases new 10-year government bonds into its portfolio, which risk or ratio is most likely to be significantly impacted?

A) Liquidity Ratio

B) Capital Adequacy Ratio

C) Credit Risk

D) Interest Rate Risk

E) Operational Risk

???? We are pleased to publish the correct answer and explanation for the quiz question in our next newsletter issue.

5. Quiz Solution Corner ?

Review and Learn from Last Month's Quiz

? What new update is currently being prepared in the EU's MiFID regulation to align with U.S. standards on publishing fair prices for financial market instruments?

A) Market Data Aggregator (MDA)

B) Unified Trade Reporting System (UTRS)

C) Consolidated Tape Provider (CTP)

D) Financial Instrument Price Registry (FIPR)

The correct answer is: C) Consolidated Tape Provider (CTP)

Explanation:

The Consolidated Tape Provider (CTP) is the new update being prepared in the EU’s MiFID II regulation to align more closely with U.S. standards, where similar systems are already in place. A CTP collects and consolidates real-time price data from multiple trading venues, ensuring that fair prices for financial market instruments are published in a transparent manner. This helps improve market transparency and efficiency by providing a single source of trade and price data for various financial instruments across the EU.

The other options are incorrect because they do not reflect the specific initiative currently in preparation to enhance market transparency in the EU through the consolidation of price data.

?? Do you want more banking quizzes and tests with detailed explanations? Sign up for our Bearning e-learning platform, where you'll find over 1000 questions ?? with explanations and the opportunity to earn a certificate. Many parts of our e-learning courses are free, including a variety of texts ??, quizzes, and insightful explanations.

For more information, visit our websites: bearning.com and bearning.sk. Follow us on LinkedIn and stay updated with the latest in banking education and workshops. Contact us at: [email protected]