Banking and Financial Intermediation

Overview:

Introduction:

Banking and financial intermediation form the backbone of economic growth by channeling funds between savers and borrowers, ensuring liquidity, and managing financial risks. This training program is designed to provide participants with a comprehensive understanding of the essential functions of banks and financial intermediaries in modern economies.

Program Objectives:

By the end of this program, participants will be able to:

• Explore the fundamental principles of financial intermediation and its impact on economic growth.

• Analyze the roles and functions of banks and other financial intermediaries.

• Develop strategies for managing risks in financial intermediation.

• Evaluate the impact of regulations and policies on banking operations.

• Explore the importance of ethics and governance in financial intermediation.

Targeted Audience:

• Banking professionals and financial intermediaries.

• Risk managers and compliance officers.

• Economists and financial analysts.

• Policymakers and regulators.

• Financial technology (FinTech) professionals.

Program Outline:

Unit 1:

Principles of Financial Intermediation:

• The concept and importance of financial intermediation in economic systems.

• The role of banks as financial intermediaries.

• Key services provided by financial intermediaries, including loans and deposits.

• Understanding the flow of funds between savers and borrowers.

• Challenges and opportunities in financial intermediation.

Unit 2:

Roles and Functions of Financial Intermediaries:

• Exploring the roles of commercial banks, investment banks, and non-bank intermediaries.

• The significance of payment systems and financial markets.

• Facilitating capital formation through financial intermediation.

• Supporting economic stability through liquidity provision.

• Understanding the global network of financial intermediaries.

Unit 3:

Risk Management in Financial Intermediation:

• Identifying and managing credit, market, and operational risks.

• Role of diversification in reducing financial risks.

• Tools and techniques for assessing risk in banking operations.

• Stress testing and scenario analysis for risk preparedness.

• Integrating regulatory compliance into risk management strategies.

Unit 4:

Regulatory and Policy Frameworks:

• The role of central banks in overseeing financial intermediation.

• Key regulations affecting financial intermediaries.

• Anti-money laundering (AML) and combating the financing of terrorism (CFT).

• Understanding Basel frameworks and their implications for banks.

• Adapting to evolving regulatory landscapes.

Unit 5:

Ethics and Governance in Financial Intermediation:

• The role of ethics in maintaining trust and integrity in financial services.

• Governance frameworks for financial intermediaries to ensure accountability.

• Preventing conflicts of interest and promoting transparency.

• Establishing codes of conduct for ethical decision-making in financial operations.

• Strategies for aligning organizational goals with ethical and governance standards.