Taipei – The Asian Bankers Association (ABA) invites intermediate to senior level executives from the Credit, Finance, Investment and Treasury Departments of banks, as well as analysts from Securities and Insurance companies to participate in the “Bank Rating and Analysis” Workshop scheduled on June 28-29, 2018 at the Grand Hyatt Hotel Taipei.

To be conducted in cooperation with the Association of Credit Rating Agencies in Asia (ACRAA), this workshop will address how Credit Rating Agencies (CRAs) conduct and assign their credit ratings on banks, with special presentations on the Chinese and Japanese banking sectors.

It aims to familiarize banks with the credit rating methodology and enable them to better understand their credit standing versus their peers in the market.

The two-day workshop will also examine and analyze the latest Basel II and Basel III-related prescriptions for banks including IFRS9, so that the participants can have better understanding of the fast-evolving bank regulatory environment, and so better navigate through the various compliance requirements.

The objective is a more solid knowledge base for bank managers and rating analysts alike.

More information about the workshop is presented at the end of this announcement including the following:

(1) Workshop Notes describing the Training Workshop Program: course objectives, course contents and topics, and Facilitators/Resource Speakers, as well as the level of knowledge expected of participants.

(2) Proposed Program of the two-day workshop

(3) Speakers CV and Resource speaker’s CV.

Regular price: US$400 per delegate.

Additional delegates from the same institution will receive US$100 discount each.

Workshop participants will receive a Certificate of Participation. All participants are entitled to a complimentary half-day tour of Taipei city.

Registration: Please email your name, position, institution and contact details to programs@aba.org.tw or call ABA at (886 2) 2760 1139.

Hotel reservation: Click on the following Grand Hyatt reservation system link, then fill information in the right top box FIND RATES & OFFERS, Code G-K0ZC, and follow the indicated steps.

https://taipei.grand.hyatt.com/en/hotel/home.html?corp_id=G-K0ZC

The hotel accommodation price per night for King Bed is approximately as follows: Single rate US$225 (NT$5,800+15.5%) and Double rate US$250 (NT$6,500+15.5%) US$ Price includes tax but varies according to exchange rate fluctuations.

 

Bank Rating & Analysis – Overview

 

VENUE / DATE: Taipei, Taiwan / June 28-29, 2018 – Grand Hyatt Taipei.

TARGET AUDIENCE: This workshop is targeted at an intermediate to senior level executives to be conducted over 2 days. It assumes a basic understanding of banks and bank credit risk, and presumes a working knowledge of bank financial statements.

COURSE OBJECTIVES: The overall goal of the workshop is to equip participants with the foundational knowledge needed to produce credible analyses of banks based on the analytical framework employed by credit rating agencies.

In addition to gaining insights into major forces shaping the banking industry, participants will learn to:

• Take a structured approach to bank credit analysis: operating environment, financial fundamentals, management and support
• Evaluate a bank’s credit strength relative to its peers using the CAMELS (capital, assets, management, earnings, liquidity, sensitivity to market risk) framework
• Understand the business and financial risks inherent in banks within the context of broader economic and industry performance
• Understand and use qualitative and quantitative indicators to identify key vulnerabilities and changes in credit quality
• Appreciate the regulatory and accounting burden from the implementation of Basel III capital requirements and IFRS 9 impairment standard

FACILITATORS:
For topic A – “Bank Ratings Overview”, senior rating analysts or heads of the banking sector from a credit rating agency of ACRAA
For topic B – ”Special Presentation: Chinese and Japanese Banking Sector”, representatives from JCR and Golden CR
For topics C & D – “Basel III and IFRS 9”, a senior banking consultant from the Big 3 accounting firm based in China / Hong Kong / Taiwan

 

Bank Rating & Analysis – Content

A. Bank Ratings Overview

I. Bank Rating Framework (Conducted by TRC)

• Types of bank related ratings (issuer v.s. issue) and what they convey
• Global scale and national scale ratings
• Bank intrinsic strength versus supported ratings
• Bank operating environment analysis (a.k.a. Bank Industry Country Risk Assessment)

 

II. Bank Level Rating Assessment (Conducted by TRC)

Business Position

• Understanding how the business model of a bank impacts its credit risk profile
• Assess bank’s business stability and its business diversification.
• Management and governance: organizational structure, strength of management team, corporate governance, execution

Capital and Earnings

• Importance of bank capital and capital adequacy in a forward looking view
• Capital: types, size, loss absorbing capability of various levels of capital including equity, and other hybrids
• Capital adequacy: measuring size, quality and adequacy of capital base and assessing regulatory capital
• Rating agency’s risk adjusted capital framework

Risk Position

• Growth and changes of risk exposure
• Risk concentration
• Risk not covered by capital model
• Asset quality and loss experience

Funding and Liquidity

• Funding risk: stability and variety of funding sources, contingency funding impact of bank funding structure on liquidity position and interest rate exposure
• Liquidity management: asset liquidity, funding liquidity and stability, quantitative measures of liquidity, asset-liability management and contingent liabilities

 

III. Bank Operating Environment (Conducted by MARC)

• How key economic conditions and monetary policy in various countries influence bank performance and risk management: considering the impact of extended low nominal growth, low interest environment, etc on bank profitability
• Understanding previous cycles and their application to current conditions
• Macro prudential indicators of risk: credit growth, equity and property prices and FX
• Bank systemic risk and contagion vulnerability
• Competitive and structural issues: challenges from new technologies and new market players including unregulated non-banks

 

B. Special Presentation: Chinese and Japanese Banking Sector (Conducted by Golden Credit/JCR)

Issues currently facing Chinese and Japanese banks in the domestic market and their implications on bank performance and financial strength: unconventional monetary policy, weak credit growth, banks’ significant exposure to government bonds, demographic challenges and other key emerging themes.

 

C. Basel II Capital Requirements (Conducted by KPMG)

Reviewing the New Rules of the Game I: The Regulatory Burden from Basel III Capital Requirements

• The Basel III Reform Package: the main microprudential banking components of Basel III, the post-crisis regulatory agenda and new paradigm of bail-in versus bail-out
• Bail-in vs. Bail-out: FSB’s standard on TLAC for globally systemically important banks, key trends and developments in the regulation of national systemically important banks
• Considering the impact of Basel III and IV on bank loss-absorbing buffers, ability to grow and returns

 

D. IFRS 9 Impairment Standard (Conducted by KPMG)

Reviewing the New Rules of the Game II: Accounting and Disclosure Under International Financial Reporting Standard (IFRS) 9 Impairment Standard

• Background on IFRS 9, estimating 12-month and lifetime expected credit losses for financial assets
• Impact on timing of credit impairment recognition, loss provisioning in financial statements, credit origination and pricing, as well as regulatory capital ratios
• Implementation challenges: processes, data, models, and infrastructure (in some instances, integrating IFRS 9 into Basel infrastructure)

 

Bank Rating & Analysis – Program

Residence 1 Hall, Grand Hyatt Taipei, Taiwan June 28-29, 2018

 

Bank Rating & Analysis – Speakers

Grace Lee
President & CEO
Taiwan Ratings Corp.

Director / Head of ABA Desk
Association of Credit Rating Agencies in Asia (ACRAA)

Grace Lee is the President and Chief Executive Officer of Taiwan Ratings Corp. (TRC), Taiwan’s leading credit rating services organization and a subsidiary of S&P Global Ratings.

Before joining TRC in Dec 2014, Grace worked with CTBC Bank Co. Ltd. in Taiwan for 7 years where she was Senior Vice President & Head of Financial Institutions.  Prior to this, she was the Managing Director and Taiwan Country Head of Kessler Financial Services International LLC. (KFSI).  Grace has also worked for several multi-national financial service institutions, where she held senior-level business management roles with regional responsibilities before assisting KFSI to establish its Taiwan branch, including ABN AMRO Bank, Standard Chartered Bank, BNP Paribas (Hong Kong), and BankBoston (Taipei & Hong Kong). Grace started her career with China Trust Company as a Management Associate and then worked with Fidelity Investments before moving to London in 1993.

Grace holds an EMBA and Master of Management from J.L. Kellogg Graduate School of Management of Northwestern University and a Bachelor of International Trade from National Taiwan University.

 

Andy Chang
Senior Director
Financial Services Ratings
Taiwan Ratings Corp.

Andy Chang is the senior director and analytical manager of Financial Services Ratings of Taiwan Ratings Corp., a partner of S&P Global Ratings. Andy is primarily responsible for leading a team of credit rating analysts covering financial institutions, which include banks, insurance companies, securities companies, and financial holding companies in Taiwan.

Andy began his career at Taiwan Ratings in 2003. He was primarily responsible for the analysis and assignment of credit ratings on financial institutions in Taiwan.

Before joining Taiwan Ratings, Andy served as an equity analyst for a leading local securities house for two years, mainly involved in the analysis of various domestic corporate sectors for foreign institutional clients. He also worked for a mutual fund company for two years, mostly focusing on product design and market research.

Andy is a Chartered Financial Analyst (CFA) and a Financial Risk Manager (FRM). He holds a Master of Business Administration from University of Illinois at Urbana-Champaign (U.S.) and a Bachelor of Business Administration from National Taiwan University.

 

Milly Leong
Technical Director
Malaysian Rating Corporation Berhad

Milly Leong is the technical director of MARC’s credit ratings function, focusing on developing rating methodology and new rating offerings in addition to providing advice and interpretative guidance on rating methodology. She also assists in identifying and implementing best practices within MARC’s rating function.

Milly has over two decades of experience in the credit rating industry, mostly in the role of an analyst on a wide array of industries and financing instruments. Milly was MARC’s Chief Rating Officer from 2007 through 2012.

She holds a Bachelor of Economics degree in Accounting and a MBA degree from Monash University and Deakin University of Australia, respectively.

 

Li Qian
Deputy Manager at Financial Services Department
Golden Credit Rating International Co., Ltd.

Position information:

Deputy Manager at Financial Services Department, Golden Credit Rating International Co., Ltd.
Member of the technical committee, Golden Credit Rating International Co., Ltd

Working Experience:

2011.4-2015.1 Rating Analyst, Golden Credit Rating International Co., Ltd.,
2015.1-2017.4 Rating Associate, Golden Credit Rating International Co., Ltd.,
2017. Till now, Deputy Manager at Financial Services Department, Golden Credit Rating International Co., Ltd.,

Ms. LI Qian serves as the deputy manager of the financial services department and member of the technical committee at Golden Credit Rating International Co.,Ltd since 2017, after 6 years of professional rating experience in the company. During her work in Golden Credit, Ms. Li Qian led the project of rating methodologies and framework construction for a set of financial institutions in the Chinese financial market, including commercial banks, securities companies, financing & leasing companies, asset management companies and micro-credit companies.

Ms. LI Qian has achieved ample experience in identifying risks and assessing credit condition of Chinese financial institutions by actively participated in more than 200 credit rating reports issuance and analytical works in her career life. She was deeply involved in rating projects for variety types of financial instruments for local Chinese banks, including subordinated-debts, financial debts and CDs.

Ms.LI Qian also has significant leading role in analytical works and contributed to industry expertise for methodologies construction for financial institutions in Golden Credit.

 

Satoshi Nakagawa
Special Representative for Asia
Special Advisor to the President for Global Strategy
Japan Credit Rating Agency, Ltd. (JCR)
Chairman
Association of Credit Rating Agencies in Asia (ACRAA)

T: +81 3 3544 7011 / E: satoshi.nakagawa@jcra.com
P: Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061 Japan

Satoshi Nakagawa is Special Representative for Asia and Special Advisor to the President for Global Strategy at Japan Credit Rating Agency, Ltd. (JCR). He promotes JCR’s global strategy including collaboration with other credit rating agencies overseas. He represents JCR at the Association of Credit Rating Agencies in Asia (ACRAA) where he serves as Chairman.

Previously, he was a member of JCR’s Rating Committee and Chief Analyst for ratings on sovereign, public entities, multilateral development banks, and global energy companies.

He developed his career at Japan’s Eximbank (JEXIM), Japan Bank for International Cooperation (JBIC), Japanese Ministry of Finance (JMOF), and the ASEAN+3 Macroeconomic Research Office (AMRO) in Singapore. His engagement in ACRAA began in 2003 when he started to promote the Asian Bond Markets Initiative (ABMI) at JMOF as Deputy Director for Regional Financial Cooperation.

He received M.Phil. in Development Studies with distinction from the University of Cambridge in 2000.

 

Tomohiro Miyao
Chief Analyst
Financial Institution Rating Department
Rating Administration Department
Japan Credit Rating Agency, Ltd. (JCR)

T: +81 3 3544 7015 / E: miyao@jcra.com
P: Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061 Japan

Tomohiro Miyao is Chief Analyst of Financial Institution Rating Department at Japan Credit Rating Agency, Ltd. (JCR). He is a member of JCR’s Rating Committee. In addition, he has been engaged in dealing with regulations and building the rating process at Rating Administration Department.

He has been with JCR since 2003, focusing on banking sector analysis for 15 years. Currently, he is in charge of Japanese Major Banking Groups (including 3 Mega Banking Groups), Regional Banks, Life Insurance Companies and Non-life insurance Companies.

Previously, he worked for Asahi Mutual Life Insurance Company, a Tokyo-based life insurance company, for seven years (1996-2003) where he accumulated expertise in various areas such as sales, asset management, ALM and corporate planning.

 

Sean Chen
Advisory Service Department
Financial Risk
Management Partner
KPMG in Taiwan

His function and specialization is in Financial Services and has in-country experience in Taiwan, China, USA and Thailand.

He has a Masters degree in Business Administration with specialization in Financial Engineering from the Schulich Business School, York University, Canada. He obtained his bachelor degree in Social Sciences – Economics from National Taiwan University, Taiwan

He is a qualified FRM (R)