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
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