Universitat Internacional de Catalunya

Financial and Banking Analysis

Financial and Banking Analysis
6
13444
3
Second semester
op
Main language of instruction: Spanish

Other languages of instruction: Catalan, English,
If the student is enrolled for the English track then classes for that subject will be taught in the same language.

Teaching staff


If you have any questions you can contact the teacher to schedule a meeting.

- Evaluation period

 (E) exam date (R) revision date (1) examination session 1 (2) examination session 2
   (E1) 28/05/2019 15:00h Aula-Grada 
   (E2) 27/06/2019 15:00h Aula-Grada

Introduction

In the event that the health authorities announce a new period of confinement due to the evolution of the health crisis caused by COVID-19, the teaching staff will promptly communicate how this may effect the teaching methodologies and activities as well as the assessment.


It is a totally practical subject that aims to introduce you, through the study of real business cases, in the global analysis that banks perform of a company that requests financing their needs. 

It is difficult to imagine the launch or growth of a company without the collaboration of financial institutions. Therefore, it is important that you know in depth what the banking-company relationship is based on and what are the key factors that a bank uses in its decision-making process. 

In an increasingly changing and dynamic economic environment, all companies are obliged to consider continuously if their business model is effective. Therefore, financial institutions are obliged to perform a global analysis of the company that determines their level of competitiveness. 

In addition to analyzing the strategic factors and the economic-financial situation of a business, it is important to know the sector in which it operates and determine if it will be able to generate enough cash to finance the investments that allow it to remain competitive. 

The balance sheet and the income statement are static tools that are biased by accounting criteria and tax interests. It is necessary to abandon the old paradigms and evolve towards an analysis based on the ability to generate cash. In short, it is the case that will allow to pay the loans, dividends, investments and meet the needs of the business. 

This subject will provide you with the knowledge and adequate tools to make an effective and real diagnosis of a company. In addition, you can understand how banks make their credit decisions and on what factors they base their analysis. 

The learning method is based on an experiential process in which the student evolves working different cases. The business situations are diverse, from a self-employed who wants to start a project to a listed company that wants to acquire the competition. 

The analysis technique used in the cases is based on the banking experience trying to bring the greatest possible realism to the subject.

Class attendance is mandatory and the most recommended method to pass the subject.

Pre-course requirements

You do not need to have high financial training to properly follow the subject, in fact, the first cases will allow you to review the main analytical tools with a real approach to make decisions.

Although some financial concepts may seem complicated, the cases used are pedagogically prepared to understand them from the utmost closeness and simplicity.

Subject based on the case method and inductive learning where the preparation and delivery of the weekly cases and the active participation will be valued positively.

Objectives

At the end of the course students must be able to:

-Mastering the most common financial concepts and tools in the banking business.

-Identify and interpret the relevant information of a company for decision making.

-Analyze and question the strategic factors of a business model.

-Diagnose the situation of a company from a global perspective. 

-Understand the key issues in the banking-business relationship. 

-To apply a methodology of analysis considering the critical factors of risk.

-Learn to argue technically the decisions taken.

-Elaborate a complete banking report considering the overall aspects of a business.

Learning outcomes

The subject will allow you to develop your capacity for analysis and decision-making. You will learn to identify key issues and interpret financial information to diagnose the overall situation of a business.

You will discuss real business situations, discuss with your teammates, work as a team and develop bank reports, but most importantly, you will learn to reasonably argue your decisions.

The subject will provide useful tools for your professional life when you have to analyze a company, evaluate a business project, negotiate with financial institutions or determine if a company will be able to finance investments that will allow Remain competitive in the future.

You will know the keys of the banking-business relationship and understand in depth why financial institutions request so much information and on what base their credit risk analysis. 

Syllabus

The cases used are disparate, present different economic sectors and reflect different business situations. You will have the opportunity to analyze both a multinational company world leader in its sector as small businesses and entrepreneurial projects with its humble business plan.

You will learn to analyze both listed companies and companies of recent incorporation where the information available is scarce.

The scenarios of the cases are different, a company will ensure that you can not attend payments and you will have to study if you restructure your debt, others will ask you to withdraw the guarantees of the members, many ask you financial aid because there are geographic areas Deficit or unprofitable lines of business, others will ask you openly how much money you would grant, some will tell you that they have anger with your bank and want to work exclusively with you and others will inform you that they have been acquired by an investment fund with A strong impact on your financial policy. In short, pure reality.

Teaching and learning activities

In person



The focus of the subject and the orientation of the cases have been prepared for you to experience recent business situations and face real challenges. But in addition, the debates and the exposure of the cases will allow you to contrast your opinion, to sharpen the risk criterion and to consolidate the acquired training.

The course is based on the case method looking for your inductive learning by applying the useful tools that will allow you to make decisions in an effective way.

Among the pedagogical methods used, the discussion of cases, equipment exposure, business simulations and role-plays should be highlighted.

Evaluation systems and criteria

In person



It is an eminently practical subject where weekly preparation and work, attendance and active participation with keys to pass the subject. 

The system will be based on continuous and progressive evaluation. That is, the student's results have more and more weight in the final grade as the subject progresses. In this way, effort and learning are prioritized. 

Business Banking has a weight of 75%, while Private Banking weighs 25%. 

At Business Banking, deliveries will weigh 50%, exams 30% and exhibition sessions 20%. 

At Private Banking, deliveries will weigh 70% and the exposure 30%. 

It is necessary to pass the two modules to pass the subject. The pass is obtained with a 5. 

In case of not passing any module, it will be necessary to pass it in second call. 

To pass the second call, you must submit a practical case and take an exam. Both exercises will have a weight of 50% on the final grade. To pass in this call, it will be necessary to obtain more than a 7, the highest grade being notable.

Bibliography and resources

From the beginning, you will have at your disposal the handbook of Financial and Banking analysis of companies prepared specifically by the teacher to be able to follow the subject properly.

Throughout the course, you will have opinion articles related to the cases analyzed to reinforce some concepts and complete your training.