We’ll take you to the next stage of your career!

BUDAPEST INSTITUTE OF BANKING

2019 AUTUMN COURSES Dear Partner,

The Institute of Banking (BIB) was brought to life by the need to modernise the adult training and examination system in banking and finance; it is the result of the accordance between Budapest Stock Exchange and its main shareholder, the Magyar Nemzeti Bank (Central Bank of Hungary) on market needs and the social responsibility objectives. Covering the entire operational range of the finance sector, we offer to participants, from experts to top managers, cutting-edge knowledge and professional development opportunities. There is no competitive financial system without competitive knowledge, and competitive knowledge demands an internationally recognised, high- quality education system.

A comprehensive training programme

Courses in banking and finance, which, connected to the banking sector and its related fields, encompass an extremely broad spectrum, constitute the first pillar of our training programme. With the BIB courses we propose solutions to the latest problems in economics and finance, facilitate uniform legal interpretation by providing an insight into supervisory aspects, and contribute to a more efficient operation of the agents of the sector by presenting best practices. In addition to our traditional classroom training, various courses have already become available in the form of E-learning as well, allowing flexible adaptation to students’ free time.

The second pillar comprises stockbroker training and further training. Only the BIB organises preparatory courses and examinations related to the stock market certification exam and qualifying exams for futures, options and securities administrators. The third pillar involves authority training courses, which are designed to provide professional further training to staff members who play a key role in the financial intermediary system and who meet clients face to face. The fourth pillar covers courses that provide nationally recognised qualifications and are designed to deliver essential financial knowledge for positions listed in the National Qualifications Register (OKJ). The fifth pillar, in turn, includes tailor-made corporate courses to serve institutional training needs.

3 First-hand knowledge from the best experts

Current topics in banking and finance are covered by highly reputed experts of market leading companies, while supervisory aspects are addressed first-hand by leading experts of the MNB. ‘Edutainment’, the toolkit of enjoyable learning, forms an integral part of the teaching methodology of BIB. The majority of our education portfolio targets Hungarian actors in Hungarian language, but there is a growing number of banking/ finance courses held in English. Our medium-term goal is to become a regional training centre of special courses.

Since the establishment of BIB at our courses in banking and finance, more than 1600 students participated in our training based on high-standard teaching methodology. Our authority and OKJ courses promoted the personal development and career of more than 2600 banking/finance professionals and our most cutting-edge E-learning courses attracted nearly 8000 participants.

Gergely Fábián CEO Budapest Institute of Banking (BIB)

4 Results Since the establishment of BIB in 2017

211courses

participants1642

authority2672 and OKJ students

8000E-learning users 216 trainers 22 national and foreign professional partners 5 Advisory Board

The professional operation of the Budapest Institute of Banking and the compilation of the training programme are assessed by a prestigious advisory board. This board monitors the institute’s work and processes, and contributes to the successful knowledge transfer in modern finances and economics.

György Matolcsy

Magyar Nemzeti Bank, Governor BIB Advisory Board, Chariman of the Board

László Windisch Márton Nagy

Magyar Nemzeti Bank, Magyar Nemzeti Bank, Deputy Governor Deputy Governor

Mihály Patai Richárd Végh

Magyar Nemzeti Bank, Budapest Stock Exchange, Deputy Governor CEO

Hans Lindberg Philip Middleton

Swedish Banker’s Association, OMFIF, Managing Director non-executive Director

Michael Feeney Jai Arya

Central , National University of Singapore Risk Adviser Bussines School, Adviser to Dean

Gergely Fábián

Magyar Nemzeti Bank, Executive Director

6 Professional community and partners

7 Our training philosophy

Modern course modules Inspiring environment (the involvement of the most outstanding lecturers (community space, flexible furnishing, in the market and among central banks, training interactivity, visualisation) courses adjusted to the market) Interactive methodology Community events (dynamic course structure, (opportunity to take part in professional events active learning, community and and conferences, alumni network) group features, edutainment)

Integrated technological solution (financial simulator, E-learning, modern digital tools for training and education)

T IN EN N M O E VA G T A IV R E U O T C R A N I E N

Y I N T

I G

V

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T Training C A pillars

CO M ES MU M N AM rs in ITY PROGR o do tdo ors ou

Training courses are sponsored by our partners in the field:

Magyar Nemzeti Bank Budapest Stock Exchange (Central Bank of Hungary) Role-play by the GRUND Theatre www.bib-edu.hu

Full house BIB course www.bib-edu.hu

9 INTERVIEW

We cannot see the future, but we can prepare for it! Interview with Atanáz Popov, Director of OTP Bank

10 Bank stress tests. It is a good tongue twister, but its real purpose is to assess the expected consequences of events which can threaten the operation of a given financial institution. The European Banking Authority has been testing the largest European banks since 2009, and they carry out new examinations every second year. They consider several seriously disadvantageous future events, and carefully examine their potential impacts on banks. The MNB also examines the resilience of domestic banks, and the banks themselves also check their own performance under various scenarios. The staff have to be properly prepared for this task with training and education. We are talking to POPOV Atanáz, Director of OTP Bank, a lecturer of the course titled Stress tests in practice.

2014 was a memorable year, when 25 of the examined 123 European banks failed the tests. It was especially the Italian colleagues who were in trouble, it was in their banks where the most serious deficiencies were found. No wonder they were called to account, their low performance had serious supervisory consequences.

- Yes, but the results of the test in 2016 were already better all over Europe, although there were banks which still had a poor performance, but at least none of them were classified as critical. At that time, the EBA primarily examined how the given bank would react to an unfavourable economic event. Altogether 51 banks improved their previous situations, which was a good reason to be really happy with the results. Following the crisis of 2008, it was obvious that there could be periods when the operation of the banks is totally upset by an unexpected event. In preparation for that, regulatory authorities are examining how the life of banks will change for a certain period of time when things get tough. They check how stable the capital situation of the banks are and should they become loss-making, to what extent they are able to solve it themselves. If a bank performs well in a test, it is very likely that it will be able to survive a period when the whole economy is in trouble. If the bank performs poorly, it may run into problems in the given situation, so it should prepare for that. This is why the results of stress tests should be included in the bank’s daily decision-making system, as they have both risk management and business relevance, and they need to be considered in the HR operation, as well.

How to be an ICAAP, IFRS 9 and Basel III expert?

- After my graduation from the University of Economics, my first job was in horticulture in the USA, Maine. Even after that, I did not really want to move to Budapest but the job 11 offered in the marketing area of the Danone centre at Budaörs seemed to be attractive, so I started to work there. It turned out quickly that it was not so much marketing, but tasks requiring analytic way of thinking that attracted me. When the circumstances allowed, I changed, and I was deliberately looking for positions in banks. Finally, I found the capital calculation area of OTP, where the current tasks were the Basel II tasks. Some people warned me that I would not be able to cope with this after the marketing job, but it worked pretty well. I have been working in this area for fourteen years, and I can cope with it quite well, as I started as a junior clerk, and today I co-ordinate the whole capital management of a multinational bank group under Hungarian control. After inspiring challenges and exciting acquisitions, now we belong to the top three-four banks in several countries. In the latest EBA test, we achieved the 9th best result among 48 banks, which required a lot of work. Regulations are getting more strict, and we have to meet several expectation systems at group level, because of our significant operations outside the EU.

When did you first feel the desire for teaching and transferring your knowledge?

When the MNB department was formed, and I was invited to teach my professional area, I did not hesitate for too long. One of the key lessons from the crisis behind us was that much more emphasis should be laid on preparations, the preliminary assessment of risks and the management of crisis situations. I was happy to accept the invitation of the BIB, as this course promotes the preparations. We present the process of stress tests, and the road from the building of risk courses to the final result of the stress test. Participants will not only learn the process of stress testing, but hear about communication and the consequences that can be drawn by the top management. The course offers an insight into new processes using stress testing, too, like the production of the recovery plan or P2G. We recommend it to colleagues with banking experiences of a few years, who participate in the testing process and integrate the experiences gained in stress testing into the decision-making processes. Those one and a half days will definitely be useful!

12 EN

Select our English language trainings

At the BIB, we pay special attention to the continuous extension and development of our English language courses. Our intention is to invite the best instructors, lecturers and experts of the area to Hungary, through our cooperation with internationally acknowledged organisations and through our trainings.

www.bib-edu.hu

INTERNATIONAL PROFESSIONAL PARTNERS Autumn courses in English

Panthera Solutions

Luca Signoretti, the senior adviser of Panthera Solutions will deliver a lecture in Budapest

The methods worked out by the consultant company Panthera Solutions seated in Monaco help financial experts use the most efficient procedures and tools in their work. They offer customized solutions to optimize the identified investment targets and to reach the desired competitive advantage. At our courses, students may learn from internationally acknowledged and innovative investment experts.

Knowledge management in Investment Teams

Date: 13 November 2019 Investment Strategy Automation

Date: 14 -15 November 2019 Behavioral Alpha Introduction

Date: 5 December 2019

Financial Innovation Assesment Further information: Date: 9 December 2019 www.bib-edu.hu

14 Autumn courses in English

London Stock Exchange Group Academy

Fábián Gergely, CEO of BIB and Daniela Biagi, Head of the LSEG Academy

At the time of the foundation of the BIB, the founders’ intentions included the idea that it should become a regional training centre too, with its special courses in English. Last year, ten percent of the courses were in English, but this year, this ratio will double. The highlights of the English language courses of this year are the joint courses of the London Stock Exchange Group Academy and the BIB. Join our courses and learn from the experts of the training centre of the London Stock Exchange, and from bank and large company managers.

Technological Innovation in Capital Markets and beyond

Date: 17 October 2019 Effective Board Report Writing Date: 21 November 2019

Further information: www.bib-edu.hu

15 Our Courses

Trainings in finance and banking Targeted Hungarian and English language training courses on the latest trends in the banking business, up-do-date knowledge ranging from the expert level to senior management. Our training courses in banking/finance are held in the presence of the most outstanding experts of the banking trade, supervisory institutions, and Hungarian or international partner institutions in higher education, with the participation of professionals from our founding institutions. Authority and OKJ trainings Staff members meeting customers face-to-face play a key role in the financial intermediary system. With a view to maintaining the stability of the financial system, our courses deliver high-level professional expertise and top-quality knowledge transfer, targeting the employees of market service providers.

Green Finance course www.bib-edu.hu

16 ESCP Summer School (June 2019) www.bib-edu.hu

Leadership trainings

With the participation of Develor and Apollo Consulting, our partners gain insight into the latest knowledge and toolkit of leadership theory. Our courses include, among others, FLIGBY – the “FLOW is Good Business” – an online leadership development simulation programme developed by Mihály Csíkszentmihályi.

Stockbroker trainings

We assist in the enhancement of stockbroker training by courses that are designed to meet the challenges of our time. Our goal is to give a solid foundation to young brokers’ knowledge, to raise the qualification standards constantly, and to upgrade the skills of brokers continuously.

In-house trainings

Adjusted to the needs of our institutional clients, all of our banking/finance courses and stockbroker training courses are available with delivery conditions based on the time and place specified by the customer.

17 Autumn courses

#Soft skill #Consumer protection Negotiation tactics Professional complaints handling Knowledge Management in Investment Teams Effective Board Report Writing Behavioral Alpha Introduction

#Banking #Finance #Investment Opportunities of the corporate bond programme (Presentation of the new Bond Funding for Growth Scheme) When does the financial manager pick up the phone? - Result-oriented corporate financing Certified high-level credit risk management ITCB TOP 10 Risks – risk management for corporate leaders and their advisors Consortial (club and syndicated) loans in practice Deep knowledge of SME reports Certified treasury expert ITCB Investment Strategy Automation Real estate investment finance Preparatory course for Series 65 Financial infrastructures Green finance II. – sustainable funding Advanced-level treasury sales Financial Innovation Assessment Rating and scoring models - methodologies and legal requirements in practice ITCB

18 The brochure contains a preliminary list of the courses to be launched in 2019 Q3–Q4, which may be expanded or modified continuously. Please visit our website for the latest information: www.bib-edu.hu English language training.

ITCB Training provided in cooperation with the International Training Center for Bankers (ITCB).

#IT #Digitalisation

Banking digitalisation expert ITCB Technological Innovation in Capital Markets and beyond Certified bank security specialist ITCB

#Regulation #MNB Prevention of money laundering and terrorism funding in precious metal and commodity trading Specialist in anti-money laundering and anti-terrorism funding I. Specialist in anti-money laundering and anti-terrorism funding II. Compliance for experts PSD2 – experiences, the most important questions and answers Advanced level IR (Investor Relations) CRR2-CRDV – Changing prudential and capital rules ITCB

#In-house trainings FLOW is Good Business - FLIGBY program Motivation map Visual presentation techniques Excel at all levels Executive training Motivation workshop Understanding the stock exchange IFRS training

19 E-learning courses

Our E-learning training materials deliver the latest knowledge and the freedom of learning simultaneously. This solution allows students to schedule the time and pace of their learning. Currently we offer IDD further training and the MiFID II professional skills and competences courses in this format, but the available selection will be expanded further shortly. Developed with the participation of Moody’s Analytics and the International Training Centre for Bankers, our Mortgage Credit Directive (MCD) programme is designed to prepare students for the requirements of the EU’s mortgage credit directive. And cooperating with the Centre for Finance Technology and Entrepreneurship (CFTE) we will offer market leading online training courses in the subjects of Fintech and Artificial Intelligence (AI) in Finance.

Check out our video presenting our E-learning materials! Budapest Institute of Banking

20 Professional E-learning courses We consider extremely important to develop high-quality digital materials!

training videos with real-life participants, infographics and examples

interactive, practice and knowledge oriented content

varied test and examination questions

easy-to-use and simple E-learning interface

making unique statistics and tracking the progress of the students

Up-to-date knowledge anytime, anywhere: www.bib-edu.hu Our E-learning selection

MiFID II. Restructuring the capital market and increasing the protection of investors, the uniform European Union regulatory framework (Markets in Financial Instruments Directive, the MiFID II directive and regulation) is intended to protect investors. Its objective is to improve the transparency of capital market schemes and to regulate new, innovative financial technologies. It requires economic participants to review their business strategies and to adjust their operation to the new rules. Our MiFID II professional skills and competences e-learning course is provided for the two thirds of the players on the Hungarian money market, and the participants can learn from the best experts of the profession on-line, from anywhere and at any time. IDD The Insurance Distribution Directive (IDD) is a European Union directive on product oversight and governance requirements for insurance undertakings and insurance distributors. Hungarian regulations were updated based on these requirements and the relevant regulations, which resulted in significant changes in the insurance market as a whole. Prior to the conclusion of contracts on investment advice or portfolio management, service providers and intermediaries are required to identify customers’ risk awareness and to present the potential dangers as well as the costs they may imply for the customer. BIB offers a flexible solution to financial institutions subject to this legal regulation, so that their staff could learn the latest skills first-hand, from supervisory experts.

22 MCD It is important for all creditors, credit intermediaries and designated sales representatives to be fully aware of the applicable rules of the Mortgage Credit Directive (MCD). The European Union adopted the MCD in the interest of reliable insurance standards and in order to improve the internal market conditions of credit agreements for consumers relating to residential property and to avoid irresponsible lending and borrowing behaviour by market participants. In cooperation with our international partners, the Moody’s Analytics and the International Training Center for Bankers (ITCB), we developed a unique Credit Coach methodology, which allows our colleagues to acquire the necessary skills in a customised and efficient way. CFTE

Technological change-over is a challenge to any market participant, but at the same time an indispensable condition of remaining competitive in the market. Our on-line training is a unique opportunity to prepare the management and staff for the change-over to new systems, and provides special insight into how the latest financial technologies are applied by the world’s leading financial institutions, technologically intensive corporations and emerging start-ups. In cooperation with the London-based Centre for Finance Technology and Entrepreneurship (CFTE), we offer on-line training, which is a market leader in Hungary and also in the Central East European region, in the subjects of FinTech and Artificial Intelligence (AI) as well. Personal experiences of the managers of the world’s twenty leading FinTech firms, innovation managers and international investors, never before heard professional advice on the future, which is already here. Be part of it!

23 INTERVIEW

Treasury, the heart of bank

Interview with István Ágoston, Director of the Hungarian Development Bank

24 Professional life: István Ágoston graduated from the Faculty of Economics at Corvinus University of Budapest specialising in foreign trade. From 1991, he worked in the foreign exchange line of business of Budapest Bank, where he became head of department. Later, he was the head of the Treasury Department of Takarékbank. Subsequently, he was the head of treasury sales of the predecessors of Bank, before becoming a treasurer. As of 2001, he was the Managing Director at the Markets Division of UniCredit Bank and a member of the Asset–Liability Committee. In 2010, he became the founder and manager of the Department of Financial Institutions of the bank. From 2015, he was the Head of Treasury and Investment Relations at MARK Zrt., from 2017, Deputy Director of the Department of Strategies and Accounts at KELER Zrt. He has been the Managing Director of the Magyar Fejlesztési Bank’s Borrowing and Liquidity Management Department since July 2018. From 1999 for 3 years, he was a member of the external executive board at Hypo Leasing. Member of ACI Hungary since 1993, and within that, a member of the Professional Committee for eight years; he has been a speaker at professional conferences and a trainer at manager courses for years.

– Those professionals who had the chance to see the re-emergence of the market from the very beginning know exactly how the reviving two-tier banking sector in the early nineties attracted enthusiastic and curious young university graduates. It was a very special period of time because of the commercial banks, the relaunching of the stock exchange, the new atmosphere as well as the possibility of activity and creativity. I started at Budapest Bank, followed by Takarékbank, where already the setting up of the FX treasury was the task.

HypoVereinsbank and its successors were the next ones for 21 years. Due to the changes in names and ownership during this period, there was no need to change jobs in order to be exposed to new professional challenges. No matter what changes took place, treasury remained within the scope of duties.

– When my friends ask me what I do, sometimes I try to compare it to the human body: the treasury in a bank is similar to the human heart, as at all times during the day its main task is to ensure – within an adequately regulated framework – stable liquidity, i.e. the bloodstream, of the bank, watching and exploiting the permanently changing movements and pulsation of money and capital markets. The activity of the treasury affects the whole financial institution, but the opposite is also: the operation of the

25 financial institution has an impact on the goals and tasks of the treasury. Financial institutions would be unable to work without a treasury. It is typical of this area that even a few people can have a major effect on the profitability and safe operation of the institution. Therefore, it is especially important that those who work here should be aware of how the market functions, the objectives, the regulations, requirements and, of course, the impacts of the transactions concluded. All this is coupled with serious IT support and a strictly controlled environment, where, seeing the continuous changes in the markets, quick decisions have to be made concerning large amounts as well, using adequate models and product knowledge.

He always had the inspiration to teach, when – together with his colleagues – he strived to present the advantages and risks of treasury products for his customers in a simple and understandable manner. Therefore, when the decision was made at UniCredit to select and train a group of internal colleagues and entrust them with a major part of the management training, István was happy to join the programme.

– I have always had an instinctive inclination to share my professional experience with others. Previously, either in ACI Hungary or at my workplace I liked to discuss professional problems. Whenever it was possible, I strived to help others’ professional development, as I also had received such support. This is also why I welcomed the opportunity of trainer training offered at UniCredit. After learning for about a year and successfully passing exams, we mainly compiled and taught executive training to our colleagues, but in addition I was also ready to continue as an instructor at professional courses whenever there was need for that. The task at BIB is to present the treasury activities, for which we attempt to bring true-life, practical examples. Personal experiences of the past 25 years serve as an adequate basis for that.

–Treasury is not an isolated area in any bank, and although there may be slight differences, similar activities are pursued at all institutions. Therefore, together with my colleague, István Veres, we compiled the syllabus of our course ‘A Close Look at the Treasury’ in a way to make it understandable and useful for the leading experts of fund managers, asset managers, insurance companies, leasing firms and institutions providing consumer credit who deal with customer relations, risk management, back- office activities, accounting, compliance, internal audit, IT or legal tasks and not with treasury activities.

26 #student #investor #financial expert Stockbroker training only at BIB!

get a prestigious and professionally acknowledged “mini-diploma” about your captial market knowledge

learn from the bests and get to know the tricks of stock traiding

stand out of the labor market and take advantage on job interviews

enter the world of stock market trading

The training offers a comprehensive knowledge of the securities market: Module 1: Economics Module 2: Securities rights Module 3: BSE and KELER regulations Module 4: Securities mathematics

(You can take these modules one by one, and together, too)

Broker training, not only for brokers!

Don’t miss it. Apply now! 27 What we are proud of:

MCD cooperation with the Moody’s and the ITCB

AmCham Hungary - Flow is Good Business event

Sold-out training course for senior managers of banks Panel discussion in London in the CFTE headquarters

KEBA award ceremony - Stock exchange game for secondary school students

28 Our new partner in training: Centre for Finance Technology and Entrepreneurship (CFTE)

We will start our cooperation with the London Stock Exchange Group Academy

29 BIB App Knowledge and leisure.

Coming soon! Our students rated us... Trainer and course

Based on 1000 participants ...

Theoretical knowledge of trainers: 9,6 / 10

Presentation skills of trainers: 9,2 / 10

Topics of course: 8,6 / 10

Professional quality of teaching / 10 materials: 9,1

Infrastructure of the education place: 9,2 / 10

Activity of educational organizers: 9,5 / 10

Costumer service and communication: 9,4 / 10 Our students rated us... Feedback

The training is held by practical experts who have many years of experience. / Certified treasury expert

I would also like to thank for the organisation of the whole week. The whole week of the training was very useful and well designed. Especially the Spanish speaker, Jamie Luque has to be mentioned, who held extremely well prepared and professional lectures. / ESCP x BIB Summer School

It was nice to experience the quick help in the form of a dialogue with actual experts, and the supporting approach - thank you! / MNB HITREG – accurate reporting service, quality data supply I believe that the value delivered by the course will benefit my work. Thank you for these two days. / Surviving the asset management (R)evolution

Professionally arranged, nice and well-prepared lecturers. Thanks for the opportunity to participate. / Compliance for experts

We gained insight into an exciting, interesting and scientifically credible model The course provided maximum satisfaction. First class organisation and arrangement. / FLIGBY: Flow is Good Business CONTACT US

Website: www.bib-edu.hu Email: [email protected]

Telephone: +36 1 429 6780

Facebook @bibbudapest LinkedIn /budapest-institute-of-banking

Company name: Budapest Institute of Banking Zrt. Company registration number: 01-10-049493 Tax number: 26133124-2-41 Head office: 1054 Budapest, Szabadság tér 7. (Platina tower I. building, 4th floor)