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
Course Fee: N175,000
3 (three) days
Methodology
Lectures Discussions Individual and group exercises Case studies Activities Post- Course Assessments Pre-Course Assessments Professional videos & Audio presentations