Common Investment Banking Interview Questions and Answers
As expected in all industries, before you are offered a job, you definitely have to pass through the process of interview, which will be to access your understanding of that particular job you are applying for.
Same thing applies in the investment banking industry, there are some industry-specific level of competence required before you are certified to work as an investment banker.
Basically, investment banking technical interview questions & answers are of two types
1. Quantitative Questions
This involves basic Accounting and Valuation. This can also be termed as technical questions as your knowledge of cash flow analysis, intrinsic valuation vs relative valuation and so on, will be tested.
This is just quite inevitable when you are applying for an Investment banking job. You will assessed based on your knowledge of accounting skills. Even if you lack basic training in accounting, you will at least be expected to have rudimentary knowledge as every investment is all about arithmetic analysis and this you have to prove to posses.
You will as well be tested based on your knowledge of valuation. This is basically a skill you get, not only through your academic background, but as a result of your daily experiences and your being conversant with the investment banking industry.
2. Qualitative Questions:
These are the kind of investment banking operations interview questions you will be asked based on your general knowledge. They may not necessarily relate to your knowledge of finance. Investment banking job interview questions are asked to measure your most basal understanding of the discipline, while the brain teaser questions are simply delivered to test your fit, your readiness and capability to work effectively in the Investment banking industry and as well your ability to hold a firm relationship with colleagues and most especially investors.
In this aspect:
• You will need to initially prove yourself as an individual ready to take up the challenge in the industry by walking the interviewers through your resume.
• Give them a tangible reason why you have chosen to work in the investment banking industry.
• You talk about your comfort ability with numbers.
• Your ability to display leadership qualities and so on
• You will also need to defend your grade at the university and your knowledge of every basic curriculum taken in every semester, especially in the courses that are directly related to investment banking.
And don’t as well forget that you are applying for an investment banking job, so investment banking internship interview questions that are as well directly involved with the industry will be asked.
• What are the latest development at this bank?
• What are latest policies and regulations of the investment banking industry?
• Do you know the regulatory bodies that monitor the activities of this industry?
• What differentiates our bank from other investment banks?
• If you have a million dollar and you would be so much interested in investment, what bank would you love to work with?
In as much as the investment banking sector is filled with much frenzy and high pay cheques, a lot of work and efforts will be expected of you and you will need to prove to them that you are highly interested to work to your fullest capacity. They will ask you investment banking analyst interview questions based on your interest and achievements such as:
• What exactly do you utilize your free time on?
• How will you explain what your greatest achievement is?
• Who are the people that have had so much influence on you?
• Can you explain to us about your personality?
You will also be asked to answer some competence-based questions in order to demonstrate to the management that you have the basic competence they seek. To give them evidence of your competence, they will ask questions that are related to:
• Deadlines: How you have always been able to meet up with deadlines?
• Ideas: Have there been any time that you introduced a new idea to a group?
• Time: Have you ever faced a situation whereby you needed to deal with a new situation and you had very little time at your disposal?
• Motivation: Has there been any situation where you are motivated to do more?
And to round it off, don’t forget that you will also be asked brain teasing questions most especially in Mathematical problems, logic puzzle and so on.