Core Classes | First Year Students
The exceptional reputation of Pacific Coast Banking School has been built on a program consisting of:
Relevant cutting-edge courses developed by leading faculty, top industry consultants and
senior bankers in the United States.
Rigorously selected and evaluated world-class faculty.
Full-length courses which go hand-in-hand with our students' experience, education, and the
goals of their organization, focusing on the principles andstrategies needed to manage a
The first year at PCBS is designed to equip students to rise into leadership by providing
a broad foundation in bank management, including economic, financial, and leadership courses. The curriculum
is entirely comprised of core (or required) courses. The in-depth information provided is then utilized in
the three extension assignments throughout the year between the first and second sessions.
Analysis of Business Conditions
This course involves analysis and interpretation of the macro-economy. National policies designed
to promote employment, price stability, and economic growth are considered. The course reviews the major
schools of economic thought and then carefully examines the postwar performance of the U.S. economy,
demographics, actions by the Fed, and current national and international policies.
Credit Risk Management: Predicting Portfolio Credit Quality
Credit risk management has traditionally focused on transaction management.
Policies, procedures, systems and controls were designed to assure the bank originated
quality transactions. Yet, many banks have failed despite doing an adequate job of
managing the risk in individual transactions. These banks became victims of the Three
Deadly Sins of credit risk management: (1) a high proportion of the portfolio in the
more risky pass categories, (2) emphasizing higher risk types on lending, and (3) allowing
concentrations to build in the portfolio with a small group of borrowers, in one
geographic area, one type of lending or one industry, type of agriculture or property type.
This course will allow students to define their institution's tolerance for risk, assess
the bank's credit culture, and determine the potential for volatility in portfolio credit
quality and earnings. Students will construct a credit risk profile for their bank to assess
the institution's vulnerability to the Three Deadly Sins. Students will have the opportunity
to benchmark their institution's credit process including loan policy, loan approval process,
asset quality (risk) rating framework, credit policy committee, credit administration and loan
review functions against industry best practices. Students will be encouraged to develop
strategies: (1) to build competitive advantage with effective loan pricing (2) to compete
in the new legislative and regulatory environment and (3) to avoid repeating industry
credit risk management mistakes. Students will also have the opportunity to focus on
key lender mistakes that can lead to potential problem loans. Finally, students will be
introduced to new tools to better manage portfolio credit risk, e.g., credit scoring,
securitization, and credit derivatives.
Dynamic Leadership provides participants with an opportunity to explore, develop
and enhance many of the critical leadership attributes, qualities, skills and competencies
needed to create and sustain dynamic organizational success. This program will challenge
the participants to build on their established skills and competencies and to exchange
ideas and experiences in a way that enhances their leadership effectiveness.
Financial Tools for Bankers
Banking involves many of the most fundamental tools and techniques
in modern finance. This course is designed to present these tools and techniques
and to show how they are used in practice to both value companies, and perhaps
more importantly, to think about what drives value and how it can be created.
In the final analysis good business decisions build value, so a strong foundation
in the determinants of value and value creation is critically important to bankers
as well as business people in general. The course is divided into three modules.
First, we will discuss the fundamentals of the time value of money. At its core,
valuation involves comparing cash flows that occur at different times and with
different levels of certainty. How do we compare a cash flow today with a cash
flow at some point in the future, even if both are certain to occur? Which one is
better? How do we know? What if one or more of the cash flows is uncertain? As part
of this process we will consider several fundamental financial instruments, including
stocks and bonds, and how they are valued in competitive capital markets. Second,
we will use what we have learned to understand valuation of private companies.
What cash flows are relevant for valuation in practice? How do we identify and
forecast them? How can we use what we know about discount rates in public markets
to value these cash flows? Lastly, in Module 3 we will work through a case study
involving an actual valuation, thereby putting into practice all that we have learned.
Throughout the process, we learn interesting and extremely useful frameworks and
techniques that will be of great benefit to you in helping you as develop a
competitive advantage over your peers and progress in your career!
Managing Bank Financial Performance
Topics covered include financial structure and financial performance of banks;
sources of information for measuring financial performance of banks; analyzing and
evaluating bank profitability; analyzing and evaluating financial risk of banks;
and analyzing bank rating services. The most important concepts that students learn
from this course include how to integrate financial reports on the banking industry,
how to pin-point the weaknesses and strengths of a financial institutions by going
through information provided in the UBPR, and how to evaluate a bank's financial
performance and find solutions to improve bank performance.