Skip to content

Asset quality, earnings and capital adequacy

Unit 15: Financial Statements AnalysisTopic 5 of 5

Browse the Accounting for Banking syllabus

Accounting for Banking

16 units

1 Introduction
2 Accounting for Deposit
3 Accounting for Bills for Collection
4 Accounting for Guarantee and Margin Deposit
5 Letter of Credit (LC)
6 Accounting for Remittance
7 Accounting for Credit and Advances
8 Accounting for Cash Transactions
- Cash books and records
- Bank reconciliation
9 Accounting for Treasury Management
10 Banking Technology Products
11 Concept of BASEL Framework
- BASEL and capital standards
12 Anti Money Laundering (AML)
- AML and legislation
- Know your customer
13 Accounting for Decision Making
- Capital budgeting evaluation
- Cost-volume-profit evaluation
14 Preparation of Financial Statements
15 Financial Statements Analysis
16 Project Work
- Project requirement
- Assignment and preparation

What the syllabus expects

Assets Quality ratios: Non-performing loans to total loans, Loan loss reserves to gross loan, Earning coverage to loan losses, Increase in loan loss reserve to gross income
Earning ratios:Net interest margin, Non-funded income expenses as a percentage of total operating expenses
Capital Adequacy ratios:Capital fund as a percentage of risk weighted assets