financial management training

financial management training- Lending activities constitute the most prominent and primary source of earnings for lending/financial institutions as intermediaries in the financial market. Credit risk assets also pose the greatest danger to the survival or existence of any lending institution. It is therefore imperative that all lending officers and risk managers in the institution are equipped with the technical and analytical skills required to analyze credit risks (identify, quantify, mitigate, and manage risks). This training programme is comprehensively designed to strengthen the capacity of all participants to understand credit policy issues, appraise credit requests, analyze various credit risks, package and process loans, and effectively manage the bank’s loan portfolio in their assigned business areas.

Highlights:

• Assessing the financial health of a corporation
• Implications of financial and non-financial factors on corporate credit risk
• Methods for monitoring and standardizing credit procedures
• Managing problem loans

After completing this course you will be able to:

1. Apply credit analysis to assess borrowers in real cases

2. Perform ratio analysis and cash flow analysis

3. Structure loan products in a competitive way

4. Identify and work-out problem loans

Who Should Attend this course?

• Account/ Relationship Officers
• Credit Analysts and Administrators
• Credit Approval Officers
• Relationship Managers
• Business Leaders

Course Outline

Day 1 

Overview of Credit Analysis

• Objectives
• Credit Risk
• Credit Analysis
• Seven C’s
• Credit Analysis Process

Lending Process

• Objectives
• Introduction
• Credit Process
• Documentation
• Loan Pricing and Profitability Analysis
• Regulations

Financial Statement Analysis-I

• Objectives
• Introduction
• Ratio Analysis
• Liquidity Ratios
• Turnover Ratios
• Profitability Ratios
• Leverage Ratios
• Market Ratios

Day 2

Financial Statement Analysis-II

• Objectives
• Introduction
• Elements of Cash Flow Statement
• Direct Method
• Indirect Method
• Interpreting Cash Flows

Non-Financial Analysis

• Objectives
• Non-financial analysis
• Economy analysis
• Industry analysis
• Business analysis

Asset Classification and Loan Loss Provisioning

• Objectives
• Asset Quality
• Quantitative and Qualitative Review
• Asset Classification
• Special Mention Asset
• Loan Loss Provisioning

Borrowing Causes and Sources of Repayment

• Objectives
• Introduction
• Operating Cycle
• Capital Investment Cycle
• Sources of Repayment

Day 3

Problem Loans

• Objectives
• Introduction
• Asset Management Companies
• Securitization of NPLs
• Debt Restructuring
• Preventing Problem Loans

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

Floor Plan Lending

• Characteristics of Floor Plan Lending
• Methods of Floor Plan Lending
• Risks Associated with Floor Plan Lending

Accounts Receivable and Inventory Lending

• Concept of Accounts receivable and inventory based lending
• Risks faced in Accounts Receivable and Inventory Based Lending

Participation Loan

• Concept of Loan participation
• Need for Loan participation
• Process of Loan participation
• Risks faced in Loan participation

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