5 Class Hours
Instructor: Christopher Nelson
Why this course is important:
The investment portfolio is a critical component of a bank’s balance sheet management. It serves a dual purpose as a source of earnings and a risk management tool. When managed well, the investment portfolio can help a community bank achieve its financial and strategic objectives, meet liquidity needs and effectively manage interest rate, credit and capital risk.
This class will explore core investment concepts and the fixed-income investments common to community banks, illustrating how the investment portfolio contributes to bank balance sheet performance from a risk/reward perspective. By mastering these fundamentals, community bankers gain essential decision-making skills for achieving their institution’s financial and strategic goals. This course not only equips participants with the technical knowledge necessary for portfolio management but also nurtures the strategic thinking required for leadership in banking, emphasizing the ability to make informed, forward-thinking decisions that impact organizational success.
Key takeaways of this course:
- Understand key investment terms and their application in managing a bank’s portfolio
- Evaluate the characteristics, benefits, and risks of various fixed-income securities
- Align investment choices with institutional objectives and risk parameters
- Recognize the investment portfolio’s role in financial performance and risk mitigation
- Develop critical thinking for strategic, forward-looking investment decisions
Annual School Session
Second Year Elective
Competency: Financial Management & Strategy