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Chapter 15: Banking—Key Ratios and Disclosures

In this section

  • Interest Income, Loan Loss Provisions, and Reserves
    Explore how banks generate interest income, manage loan loss provisions, and maintain adequate reserves under IFRS 9 and CECL. Learn about net interest margin, coverage ratios, and key disclosures that analysts use to evaluate a bank’s health.
  • Basel Accords and Tiered Capital
    Explore the Basel Accords’ evolution, their tiered capital requirements, and how they shape banks’ resilience against financial crises.
  • Off-Balance-Sheet Items: Contingent Liabilities
    Explore how banks manage off-balance-sheet exposures, with real-life examples, regulatory guidelines, and ratio impacts for CFA Level II preparation.
  • Practice Vignette: Analyzing Bank Performance
    Deep dive into a realistic bank financial analysis scenario, focusing on interest income, capital adequacy, off-balance-sheet exposures, and IFRS 9 or CECL provisioning methods for the CFA® 2025 Level II exam.
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Chapter 14: Financial Institutions—Sector Overview
Chapter 16: Insurance Companies—Core Analysis