By the end of this training course, trainees will be able to:
- Explain the essential roles of banks, the purpose of credit functions, and how credit decisions support economic activity.
- Differentiate between various types of credit facilities, describe their purposes, and identify the conditions and risks under which each facility is typically granted.
- Apply the full credit assessment process, including data collection, due-diligence steps, use of checklists, site visits, and preparation of the credit assessment report.
- Analyze industry, business, management, and financial information to assess borrower creditworthiness and identify key risks.
- Interpret financial statements, calculate key financial ratios, and evaluate cash-flow dynamics relevant to credit decisions.
- Design an appropriate credit structure by aligning facility type, amount, pricing, tenor, covenants, and collateral with both the borrower’s needs and the bank’s risk appetite.
- Prepare and present a complete, well-reasoned credit report that consolidates findings, supports recommendations, and adheres to the bank’s credit policy and risk appetite.
- This course is designed for bankers working in corporate banking and credit management. It equips participants with a structured methodology and a robust framework for assessing credit risk, while upskilling their analytical and decision-making capabilities.
- The primary roles of a bank: this module provides the foundational context needed before analyzing or structuring credit facilities
- What does a bank do?
- The role of central banks.
- Basel Accords.
- Why credit assessment and decision making are crucial.
- Expected Credit Loss (ECL) and RAROC.
- Types of credit facilities:
- Defining the purpose and risk of each facility type.
- Determining the amount of the facility.
- Facility tenor, pricing, covenants, and conditions.
- The Credit Assessment Process:
- Walk through the credit assessment process.
- Credit assessment documentation package.
- Importance of the credit assessment checklist.
- Importance of site visit and site visit report.
- The Credit Report.
- The Core Elements of Credit Assessment:
- Identifying major sources of credit risk.
- Industry risk assessment.
- Business risk assessment.
- Management risk assessment.
- Financial risk assessment:
- Key financial ratios used for risk analysis.
- Understanding cash flow and cash flow drivers.
- Designing sound, risk-appropriate lending structures.
- Aligning structure with both the borrower’s needs and the bank’s risk appetite.
- Determining the appropriate facility amount.
- Determining interest rate and fees (risk vs reward).
- Determining the appropriate repayment schedule.
- Assignment of proceeds.
- Types of collaterals.
- Types of covenants.
- Defining events of default .
- Case study: a comprehensive real-life case study designed to apply all concepts learned throughout the training.
- Review and analyze client data.
- Analyze borrower financials.
- Identify risks.
- Determining funding needs.
- Proposing a full lending structure.
- Write a credit report.
- Present the recommendation.