ProBanker simulation software can be used in corporate training programs in banking at several levels, from junior officers to senior executives and board members. The web-based program complements a series of lecture based modules that focuses on training decision-making skills in a competitive environment.
- It allows participants, working in teams, to input a range of decisions related to deposit and loan pricing, bond investments, marketing strategies and capital management.
- The variables include various deposit and loan interest rates, advertising expenses and purchases and sales of bonds.
- After every simulation, the results are reviewed and discussed with the instructor prior to inputting decisions for the following quarter.
Why simulation-based training?
- Simulation-based training is now recognized as the most effective way to teach decision-making skills
- Allows structured learning experiences and targeted competencies
- Provides an opportunity to amplify specific real word environments and dynamically evaluate decisions
- Ideal for evaluating team-based and interpersonal skills
- Simulation-based training is interactive and participants retain more knowledge than lecture-based classes (and fun)!
Why you should attend?
- Career-oriented banking professionals, it is important to supplement domain knowledge with decision-making experience
- Simulation-based training provide the best approach to integrating domain knowledge with decision-making skills
- Working with teams and coordinating multiple decisions will strengthen both organizational abilities and strategic skills
- Simulation-based training enables participants to fine-tune your decisions without incurring real costs of failure.
The objective of using ProBanker in a corporate training program is to:
- develop a comprehensive knowledge on the principles of bank management, including duration and gap management, capital adequacy, liquidity management, and loan loss allowances
- understand the interplay between macroeconomics, interest rates and the demand and supply for credit
- recognize the competing impacts of regulatory and economic choices
- learn teamwork skills and the significance of coordinated decisions
Overview of Game
ProBanker simulates a competitive banking environment where managers acquire deposits and long-term capital and distribute them in the form of loans and investments.
- The course can be structured to focus more on decision making skills including forecasting of demand for loans and deposits
- The complexity of the simulation can be varied to tailor to the objectives of the course including advanced topics such as duration hedging, gap management and credit management.
- The simulation provides a hands-on approach to understating the complexity of banking
ProBanker offers two modes for training.
Autosim mode, participants play against the computer to help them understand the sensitivity and impact of each variable in isolation.
Competitive mode, they play against other teams in a simulated banking market. The application allows for different degrees of complexity, making it appropriate for use from introductory to advanced training workshops such as risk management.
Coverage of Topics In ProBanker Simulation
The following instruments and bank management topics are covered in the simulation. The level and depth of the coverage will depend on the corporate training module.
- Sale and purchase of federal funds
- Forecasting and setting interest rates
- Term structure of interest rates
- Deposit insurance
- Regulatory capital adequacy
- Fixed and floating rate loans
- Installment loans
- Loan loss accounting
- Retail and corporate demand deposits
- Passbook accounts
- Negotiable and retails CDs
- Leverage ratios
- Basel capital ratios
- Discount Window advances
- Bond pricing
- Capital gains
- Asset Liability management
- Interest rate risk management
- Reserve management
- Management of interbank loans
- Net interest and fee income
- Default risk premium
- Asset pricing
- Liability pricing
- Balance sheet management
- Loan loss accounting
- Strategic management
- Competitive market positioning
- Team management
- Dividend management
- Share buybacks
- Loan loss provisions
- Elasticity of demand and supply