MBA Perry School of Banking
The curriculum is designed to provide students with the specific skills needed to manage the functional areas of banking, as well as develop the ability to solve problems, work in teams and make decisions in a managerial setting. The core curriculum also creates an understanding of how banks fit within the financial services industry in the new millennium. The school exposes students to the increasingly complex and important areas of legal and regulatory issues, legal environment and the role of the Federal Reserve. Lastly, MBA Perry School of Banking establishes knowledge of community banking sales, business development strategies and community economic development programs.
Course Instruction
This school consists of a one-week term for three years. Between the terms, students are expected to complete four correspondence assignments. Students must satisfactorily complete the assignments to return for the second and third years.
Between the on-campus sessions, banking school participant’s complete four correspondence assignments that reinforce the concepts learned during the school giving participants an opportunity for hands-on analysis. Cases involve bank financial analysis, technology/operations issues, bank marketing and asset/liability management.Satisfactory completion of the home study cases assigned is required for graduation from the school.
1st Year Schedule
- Macroeconomics and the Banking System - This course provides bankers with a foundation of economic principles, concepts and policies.
- Retail Loan Department and Portfolio Management - This session includes a discussion of loan policy formulation, loan administration and portfolio allocation, identifying the major types of consumer loans and lending criteria, understanding loan collections and loan loss reserve adequacy, recognizing and reacting to external loan competition and evaluating loan performance.
- Commercial Lending - Learn to differentiate between three major types of bank loans, discuss/implement methods of analyzing financial statements, recognize the importance of proper loan documentation, perfection of security interest and consider some of the main elements of a bank’s loan policy.
- Operations and Technology Issues - This session gives students a good understanding of where payment systems and technology are going and the major issues surrounding them as they continue to impact the delivery of bank services.
- Real Estate Lending/Underwriting and Commercial Real Estate - This session provides a brief overview of the functions of real estate lending including the importance of title search and lien perfection and a review of popular mortgage products and new developments in the mortgage industry. This session gives basic instruction in real estate finance and instruction on appraisals, loan analysis, documentation, marketing and servicing.
- Investments for Bank Portfolios - Learn the process of formulating investment strategies and policies, identify major principles in investment strategy and recognizing the risks, return and market differences between investment instruments.
- Bank Financial Analysis I - Learn to recognize and understand basic balance sheet and income statement components, define key concepts in evaluating financial statements, recognize major sources of revenue and expense and understand how to use operation’s ratios for planning and managing a bank.
- Deposit and Liabilities - This session explains the differences in deposits, identifying major banking innovations, understanding the restructuring of bank products and services to meet the competitive challenges of the new millennium.
- Sales: It’s Not a Four-Letter Word - Are you a salesperson? You better be if you want to succeed in today’s hyper-competitive financial service marketplace. This session will provide you with the building blocks of becoming a successful salesperson so you can defend your “turf ” and get more business.
2nd Year Schedule
- Strategic Planning - Examine and understand the critical issues facing your financial institution. Participate in an exercise designed to correct weaknesses, take advantage of strengths and maximize opportunities in a continuously changing environment.
- Bank Marketing - This course includes an overview of the basic principles of marketing as applied to banking. Students are required to write a marketing project paper – the results of which will be of benefit to their bank.
- Asset Liability Management - Learn how asset liability management functions as an integral part of achieving financial goals. This course will address concepts relating to interest rate risk, liquidity risk, efficient capital deployment and managing the overall profitability of the bank.
- Bank Financial Analysis II - Build on Bank Financial Analysis I and create a deeper understanding of key operating ratios and their relationship to bank profitability.
- Risk Management - Investigate various types of bank insurance including blanket bond, directors and officers liability, trust errors and omissions, single interest, credit life, etc. Students also learn methods of analyzing and comparing insurance proposals.
- Bank Auditing - Explore the relationship between the internal/external audit functions and the role of regulatory examinations. The course identifies generally accepted internal controls and explains the basic mechanics of establishing appropriate audit trails.
- Bank Profitability - Balance sheets and income statements of several distinctly different banks will be reviewed. Cyclical, economic and philosophical changes will be discussed along with the impact they have on different banks and how a bank may react in structuring their profitability.
- Bank Security and Fraud Issues - Students will examine laws and regulations affecting bank security, expose students to a variety of security systems and procedures designed to protect the bank, its employees and customers.
- Cash Management Issues - Learn how to define cash management, calculate float, define balance reporting and compensating balance, describe lock box services, explain benefits of direct deposit of payrolls and account reconciliation services and understand risk in cash management services.
- Effective Leadership/Management Styles - Learn how to think like an effective leader, gain respect and support, give and receive feedback and learn how to be more assertive when dealing with others. You will identify your communication strengths and learn what you can do to develop your communication skills.
3rd Year Schedule
- Human Resource Management - Areas explored include employee motivation, state and federal employment laws, why hiring the “right” person is critical, employee interviewing, performance appraisals and how to approach employee performance issues in a progressive and developmental way.
- Managing Regulatory Risk - Learn about the legal environment that banks operate today and how it has evolved. Included is a discussion of the various financial services provided.
- Behavioral Principles for Improving Productivity - Develop and understand motivation, leadership, goal setting, decision making, consequence formation, conflict resolution and team effectiveness. The session includes extensive practice and case studies to help develop your skills.
- Trust and Estates - Get an overview of the duties and responsibilities of a corporate trustee – estate settlement, tax reporting, asset management and personal and employee benefit account administration.
- Managing Conflict at Work - This session will help you understand and effectively deal with conflict. Become more aware of the many personal and organizational benefits that are achieved when conflict is viewed as positive rather than negative.
- Bank Regulation - Students will discuss the purpose and scope of bank regulation, review sample examination reports and learn how CAMEL ratings are assigned.
- Purpose and Philosophy
- With today’s competitive environment and focus on service and technology, employees need to be better educated now more than ever. In this one-week, three-year program, the MBA Perry School of Banking provides individuals with a concentrated, fast-paced understanding of banking. The mission of this school is to prepare first-level and mid-level managers to effectively and profitably serve their financial institution by providing information in which the following are achieved:
- Increased understanding and appreciation of the many functions within the bank allowing them to contribute more effectively to the bank.
- Better understanding of a bank’s role in the financial services industry.
- Expand their skills and knowledge beyond on-the-job training as preparation for additional responsibilities.
- Increased knowledge and skills immediately applicable to their daily responsibilities.
- New ideas and recharged attitude after interacting with other banking professionals.
- Excellent foundation for continued education.
Admission Requirements
For admission, an applicant must be employed as a key staff member of a Michigan bank, or an associate member, or a bank regulator and:
Have a college degree and two years banking experience, or have a high school diploma and five years banking experience.
Be recommended by senior management.
Bank Management Simulation
Along with the challenging curriculum, the MBA Perry School of Banking also offers bank management simulation in the final year. This phase of the school allows participants to make decisions as senior officers of a bank. Working in teams, participants make operating, lending and pricing decisions that influence bank profitability and bank stock price. As in the real world, good decisions lead to improved profits, higher stock prices while bad decisions generate reduced earnings and share prices.
Who should attend
Participants are generally in managerial or professional positions at member banks. Those attending are usually branch managers, assistant managers, personal bankers, senior customer service representatives, operations managers, lenders and others with a desire to expand the scope of their banking knowledge and prepare themselves for growth within their bank.