Introduction to Bank Lending

Who Should Attend:

• Fresh Credit Officers , Fresh Credit Risk Analysts
• Newly Appointed Employees in the Finance, Credit and Lending Department
• Retail Banking Staff & Relationship Managers
• Compliance Officers
• Trade Finance Department Staff
• Staff transferred to Corporate Banking Department

Course Objectives

• To help participants gain the essential technical skills of tasks performance regarding Credit Department increasing their overall effectiveness.
• An Overview of Credit Risk Measurement and Management
• Understand the process, different forms and types of Lending by a Bank
• Familiarity with the processes and principles of Credit Operations and the importance of loan and bank policies
• Gain an in-depth knowledge of Credit Risk Analysis, the types of Risks and how to tackle different elements of risks
• Learn about the different types of Credit and Lending Facilities
• Provide an in-depth knowledge of Financial Analysis techniques – all about Income Statements, Financial Ratios, Balance Sheets.

What will you gain?

Upon completion of this course, you will be able to:

• Understand the credit process, the different types of credit and lending opportunities
• Understand the Financial Analysis and Ratios and how each system is implemented within the Credit Department
• Gain a hands-on knowledge on the role of Commercial Banks in Lending
• Learn step-by-step process of Bank Lending and Credit Operations
• Comprehend the types of Risks and elements of dealing with this.

Course Content

(Chapter One) General Introduction – Credit granted by Commercial Banks:

• The role of commercial banks in economic and social activities
• Types of Markets
• Objectives and functions of Qatar Central Bank
• Legal forms of companies
• The main elements of the bank credit policy

 (Chapter Two) Principles of Credit Operations:

• Credit analysis  MARS +
• The matching between the loan purpose and the bank policy
• The importance of Customers Interviews
• The field visits
• The credit staff skills
• The stages of the customers interviews
• Questions to be covered
• The asset conversion cycle

(Chapter Three) Credit risk Analysis: The Elements of Dealing with the Risk

• Risk Types
• Environmental Risk
• Industry Risk
• Operational Risk

a-  Activity Risk

b-  Financial Risk

c-  Managerial risk

• The SWOT analysis

  (Chapter Four) Preparing the Credit Memo

• The types of the credit facility
  • Medium and long term
  • Fixed maturity
  • Revolving
• The additional securities
  • Personal
  • Shares
  • Third party Guarantees

 (Chapter Five) the preparation of the Credit Study including the Financial Analysis:            

• The Balance Sheet Equation
• The Income Statement
• The Common Size Analysis
  • Vertical
  • Horizontal
• Financial Ratios                     
  • Net working capital
  • Liquidity ratios
  • Inventory turnover
  • Average collection period
  • Average payment period
  • Others
• A Complete Proposed Credit Facilities Study
• Case studies
• Assignments 
• SWOT.