Banking and Credit Analysis
Banking and Credit Analysis
OBJECTIVES
- Use ratio analysis as part of the mean of establishing a company’s credit worthiness.
- Be able to construct cash flows and make forecasts.
- Understand the relationship between company valuation and credit analysis.
- Have a better understanding of credit grading techniques and issues.
- Be able to hold constructive and useful meetings with customers regarding credit issues.
WHO SHOULD ATTEND?
Credit Managers, Credit Analysts, Risk Managers, General Managers, Finance Directors, Financial Controllers, Treasury Managers, Treasurers, Finance Managers, Accounts Managers, Treasury Analyst, Financial and Management Accountants, Auditors, Financial Analysts, Accounts Supervisors and Accounts Superintendents.
COURSE OUTLINE
Overview of Credit Analysis | | - Importance of credit analysis in credit risk
| | | - Principles of credit analysis
| | | - Seven C’s of credit analysis
| | | - Steps in credit analysis process
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Lending Process - Various steps involved in loan appraisal
| | - Components of a bank’s lending policy
| | | | | | - Loan Pricing and Profitability Analysis
| | | - Regulations related to lending
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Financial Statement Analysis-1 - Various types of ratios including liquidity ratios, turnover ratios, profitability ratios, leverage ratios and market ratios
| | - Importance of these ratios
| | | | | | - It also has a calculator for calculating various ratios from a Balance Sheet and P & L Account
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Non-Financial Analysis - Economy, Industry and Company (EIC) framework
| | - Models for non financial analysis
| | - Case studies for analysis
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Asset Classification and Loan Loss Provisioning - Need for asset quality assessment
| | - Quantitative and Qualitative Review of asset quality
| | - Categories of asset classification
| | | | - Loan classification practices in various countries
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Borrowing Causes and Sources of Repayment - Need for asset quality assessment
| | - Quantitative and Qualitative Review of asset quality
| | | - Categories of asset classification
| | | | | | - Loan classification practices in various countries
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Problem Loans - Non-performing loans (NPLs)
| - Methods of resolving NPLs
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Consumer Installment Lending - Types and characteristics of consumer installment lending
| - Various types of Installment loans
| - Dealer Agreement, Recourse and Dealer Reserve
| - Common risks faced in consumer installment lending
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Floor Plan Lending - Characteristics of Floor Plan Lending
| - Methods of Floor Plan Lending
| - Risks Associated with Floor Plan Lending
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Participation Loan - The Concept of Loan participation
| - Need for Loan participation
| - Process of Loan participation
| - Risks faced in Loan participation
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| | Letter of Credit and Loan Commitments - Concept of Letter of Credit (LC)
| - Types of Letter of Credit
| - Risks faced in Letter of Credit
| - Loan commitments, Un-funded lines of credit and their characteristics
| - Potential credit risk in loan commitments and un-funded lines of credit
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