Commercial Banking Analyst

Role cheat sheet

Net interest margin

Net interest income divided by average earning assets. Compare annualisation, asset mix and repricing dates.

Review the lesson

CASA ratio

Current and savings deposits as a share of total deposits. Funding costs also depend on rates, mix and deposit behaviour.

Working capital facility

A revolving facility can fund inventory and receivables. Assess the cash cycle, seasonality, collateral eligibility and utilisation.

Review the lesson

Term loan versus revolver

A term loan commonly funds longer-lived assets with a scheduled repayment profile. A revolver covers changing short-term needs within a limit.

Credit cost and provisions

A provision recognises expected or assessed credit losses under an applicable framework. Compare flows, stock of reserves and asset quality.

Review the lesson

Relationship pricing

Consider spread, fees and ancillary revenue alongside funding, expected losses, capital and servicing cost.

Practise interview questions