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.

Available TodayOnlineUSD$200
Instructional Method:
Self-Study
Level: Basic
CPE Credits: 26

Financial analysts, portfolio managers, credit officers, commercial bankers, loan and lending professionals, and credit risk managers.
Overview of Credit Analysis
  • 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

Lending Process

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

Financial Statement Analysis

  • 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
  • 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

Non-Financial Analysis

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

Asset Classification and Loan Loss Provisioning

  • 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

Borrowing Causes and Sources of Repayment

  • 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

Problem Loans

  • Non-performing loans (NPLs)
  • Methods of resolving NPLs
  • How to prevent NPLs

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

  • The 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

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