At the end of this course, the participants should be able to:

• Know the factors affecting the bank’s ability and willingness to lend
• Understand the concept of credit risk
• Documenting facilities and types of guarantees
• Classifying debts in line with the creditor interest and policies

Factors affecting the Creditor ability& Willingness to Grant loans and credit facilities.

• Internal Factors
• External Factors

Credit Officer Role

• Required Effort
• Credit Officer Characteristics

Credit Basics

• Financial Status of borrower
• Legal Status of borrower
• Amount-Purpose-Source of Repayment-Collateral..

Concept of Credit Risks

• Risk Assessment& Management
• Types of Risks
• Basel Approach to Credit Risk
• Ways to reduce Credit Risk

Transaction Structuring

• Structuring Process
• Asset Conversion Cycle
• Operating Cycle & Credit Gap

Types of Facilities

• Direct facilities
• Indirect facilities

Documenting Facilities & Guarantees

• Loan Agreement
• Specification of Acceptable Collateral
• Types of Collateral

Credit Administration & Credit Control

• Control over granting & Renewal of Credit
• Monitoring the use of credit
• Monitoring the covenants
• Monitoring the Collateral
• Monitoring total Facilities Portfolio

Rating Debt

• Treatment of bad debt
• Retail Credit Products