Credit Analysis

 

Credit Analysis - Online

This course gives an introduction to the concept of credit risk and analysis and the lending process followed by banks. Students are refreshed on ratio, cash flow and non-financial analysis as used in credit analysis.

This course goes on to explain the impact of problem loans and the concepts of Consumer Installment Lending, Floor plan lending which is a specialized revolving line of credit. Also included is an introduction to the concepts of Accounts Receivable and Inventory Lending, Participation Loans, Letter of Credit and Loan Commitments.

This is an online self study course that can be globally accessed from any internet enabled computer. Access is for 91 days. Certificates with earned credits will be awarded upon successful completion.

 

"This course was great. I don't regret taking a chance with an online course. Thank you very much!"
"The course material was clear and easy to understand. The audio, video and job aid material made understanding much easier. The presentation of the material related to real life situations which made retention easy."
 


Target Audience

Financial analysts, portfolio managers, credit officers, commercial bankers, loan and lending professionals, and credit risk managers.

Learning Objectives

Students will be able to:

  • Apply credit analysis to assess borrowers in real cases
  • Perform ratio analysis and cash flow analysis
  • Structure loan products in a competitive way
  • Identify and work-out problem loans

Course Syllabus

Overview of Credit Analysis

Topics covered include:

  • Stages in credit risk
  • Importance of credit analysis in credit risk
  • Principles of credit analysis
  • Seven C's of credit analysis
  • Steps in credit analysis process

Duration: 1 hour

Lending Process

Topics covered include:

  • Various steps involved in loan appraisal
  • Components of a bank's lending policy
  • Loan Documentation
  • Loan Pricing and Profitability Analysis
  • Regulations related to lending
Duration: 1.5 hours

Financial Statement Analysis - I

Topics covered include:

  • Various types of ratios including liquidity ratios, turnover ratios, profitability ratios, leverage ratios and market ratios
  • Importance of these ratios
  • Comparative analysis
  • It also has a calculator for calculating various ratios from a Balance Sheet and P & L Account
Duration: 1.5 Hours

Financial Statement Analysis - II

Topics covered include:

  • Statement of Cash Flows
  • Cash flow from operating, investing and financing activities
  • Direct and indirect method of preparing statement of cash flows
  • How to interpret cash flows for decision making

Duration: 1 hour

Non-Financial Analysis

Topics covered include:

  • Economy, Industry and Company (EIC) framework
  • Models for non financial analysis
  • Case studies for analysis

Duration: 1 hour

Asset Classification and Loan Loss Provisioning

Topics covered include:

  • Need for asset quality assessment
  • Quantitative and Qualitative Review of asset quality
  • Categories of asset classification
  • Special mention assets
  • Loan classification practices in various countries

Duration: 1 hour

Borrowing Causes and Sources of Repayment

Topics covered include:

  • Need for asset quality assessment
  • Quantitative and Qualitative Review of asset quality
  • Categories of asset classification
  • Special mention assets
  • Loan classification practices in various countries

Duration: 1 hour

Problem Loans

Topics covered include:

  • Non-performing loans (NPLs)
  • Methods of resolving NPLs
  • How to prevent NPLs
Duration: 1.5 hours

Consumer Installment Lending

Topics covered include:

  • 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

Duration: 1 hour

Floor Plan Lending

Topics covered include:

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

Duration: 1 hour

Accounts Receivable and Inventory Lending

Topics covered include:

  • Concept of Accounts Receivable and Inventory Based Lending
  • Risks faced in Accounts Receivable and Inventory Based Lending

Duration: 1 hour

Participation Loan

Topics covered include:

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

Duration: 1 hour

Letter of Credit and Loan Commitments

Topics covered include:

  • 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

Duration: 1 hour

Job Aids & Take Aways

Included:
  • Benchmarking Template
  • Disclosures
  • Measurement Tools
  • Global Best Practices
  • Regulations
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SESSIONS AVAILABLE

This New York Institute of Finance eLearning course is available 24 hours a day, 7 days a week and is designed so you can learn at your own pace - anytime and anywhere you access the Internet.

COURSE INFORMATION

CEU Credits 26
ICB Credits 18.5
Price
$250 USD
Duration 14.5 Hours
Advance Preparation
No advance preparation required.
Prerequisites
This course has no prerequisites.
Instructional Method
Self-Study Online
Level
Basic