Corporate Banking Simulation

Become a Corporate Banking officer responsible for managing key client relationships. Your goal is to analyze corporate clients, structure winning financing deals, and manage risk, while maximizing your bank's profitability in a competitive market.

Corporate Banking Simulation Overview

Participants of the Corporate Banking Simulation will be presented with a portfolio of corporate clients from various industries, each with unique financial needs, risk profiles, and strategic goals.

As a team, participants must compete against other "banks" to win business by offering the most attractive and profitable financing solutions. They will analyze financial statements, assess credit risk, structure term loans and revolving credit facilities, negotiate terms, and navigate the impact of economic cycles on your loan book.

The simulation provides a realistic, risk-free environment to understand the intricate balance between client relationship management, credit underwriting, and shareholder returns.

Corporate Banking Simulation Concepts

Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on the learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:

Financial Statement Analysis
Credit Analysis and Risk Assessment
Loan Structuring
Debt Capital Markets Basics
Pricing and Spread Determination
Covenant Setting and Monitoring
Relationship Management
Capital Allocation and Portfolio Management
Profitability Analysis
Syndicated Lending

Gameflow

What Participants Do

In the simulation, participants will:

Analyze the creditworthiness of corporate clients using real-world financial data.
Structure and price various debt instruments, including term loans and revolving credit facilities.
Negotiate key terms such as interest margins, fees, and financial covenants with clients.
Compete in a live deal pipeline to win lucrative financing mandates.
Manage a portfolio of loans, monitoring covenant compliance and client performance.
Respond to dynamic economic events that impact your clients and your bank's balance sheet.
Present your financing proposals to an "approval committee".
Balance the trade-offs between risk, return, and capital constraints.

Learning Objectives

By the end of the simulation, participants will be able to:

Analyze a company's financial health and identify key credit risks.
Structure appropriate debt financing solutions tailored to specific client needs.
Price loans and facilities to achieve target risk-adjusted returns.
Evaluate the impact of different economic scenarios on a corporate loan portfolio.
Articulate the rationale behind a credit decision in a clear and professional manner.
Understand the end-to-end process of corporate lending, from pitch book to portfolio management.

How the Corporate Banking Simulation Works

This simulation can be run individually or in teams in academic or corporate contexts. Each cycle represents a stage of getting through a pressing financial situation.

1. Team Formation Participants are divided into teams, each representing a competing corporate bank.

2. Deal Pipeline Each round, a new deal pipeline is released. Teams receive detailed information on companies seeking financing.

3. Analysis and Structuring Teams analyze the clients, build a credit view, and structure a proposed financing package (loan type, amount, tenor, interest margin, fees, covenants).

4. Bidding and Award Teams submit their final bids. The simulation engine, or the instructor, awards the deal to the bank with the most competitive and profitable offer.

5. Portfolio Management Won deals are added to the team's portfolio. Teams must monitor their clients' ongoing performance and covenant compliance.

6. Economic Updates Each round is accompanied by economic news that may affect specific industries or the entire market, forcing teams to adapt their strategy.

Frequently Asked Questions

What is the main goal of the Corporate Banking Simulation? The primary goal is to provide a hands-on, practical understanding of how a corporate bank operates. You learn by doing—making credit decisions, negotiating terms, and managing a portfolio—ultimately seeing the direct link between your actions and your bank's financial performance.
Do I need prior banking experience to participate? No prior professional experience is required. A basic understanding of accounting and finance is helpful, but the simulation is designed as a learning tool with guidance and reference materials to support participants at various levels.
What kind of financing deals will we be working on? You will encounter a range of standard corporate banking products, including acquisition financing, capital expenditure funding, working capital revolvers, and refinancing of existing debt for companies of different sizes and credit ratings.
Is this a team-based or individual activity? The simulation is primarily designed as a team-based activity to foster collaboration, debate, and strategic decision-making, mirroring the real-world team environment of a corporate bank.
Can the simulation be customized for our specific program? Yes, we can often customize certain elements, such as the client industries, deal types, or economic scenarios, to better align with your curriculum or training objectives. Please contact us to discuss possibilities.
What technical requirements are needed to run the simulation? The simulation is browser-based and runs on any modern web browser. A stable internet connection is required. No special software installation is needed.

Assessment

Assessment of participant performance can be tailored according to the host institution’s objectives (business school, corporate training, assessment centre). Typical assessment criteria include:

Final Bank Profitability
Portfolio Quality and Risk Management
Deal-Winning Ratio
Credit Committee Proposals
Final Strategic Presentation

Assessment may incorporate peer and self-review components, facilitator scoring, and debrief discussion. Results may feed into grades, executive feedback, certification or development plans.