INTRODUCTION
In today’s dynamic financial landscape, effective credit analysis and lending decisions are crucial for maintaining healthy portfolios and sustainable business growth. This comprehensive training program is designed to equip participants with fundamental credit principles and practical analytical skills required for sound lending practices. The program combines theoretical knowledge with hands-on application through case studies and real-world scenarios, ensuring participants can immediately apply their learning in their professional roles.
PROGRAMME OBJECTIVE
Upon successful completion of this training, participants will be able to distinguish between various lending situations and scenarios while understanding the specific credit analysis requirements for each. They will develop competency in analyzing market trends and dynamics to anticipate changes and adapt lending strategies accordingly. Participants will master the application of analytical skills for business loans using financial ratio analysis and gain comprehensive understanding of lending risk nature along with exposure to credit risk management tools. The program also emphasizes practical application through workshops that critically analyze case studies on basic credit analysis and lending situations.
MODULE 1: TYPES OF LENDING SITUATIONS
- Retail lending products and their characteristics
- Business loans and commercial lending structures
- Asset financing mechanisms and applications
- Project financing frameworks and requirements
- Trade financing instruments and processes
- Industry-specific loan considerations
- Government agency lending protocols
MODULE 2: UNDERSTANDING MARKET TRENDS
- Implications of key market trends including proposed amendments in BNM OPR
- Impact factors for various industries based on current market conditions
- Environmental mapping using Harvey Gill template
- Economic indicators and their influence on lending decisions
- Regulatory changes and compliance requirements
MODULE 3: KEY FINANCIAL RATIOS FOR CREDIT ANALYSIS
- Establishing the ten most relevant ratios for lending and credit analysis
- Profitability ratios and their interpretation
- Liquidity ratios and working capital assessment
- Leverage ratios and debt capacity evaluation
- Application to real case studies and financial statements
MODULE 4: FINANCIAL ANALYSIS REPORTING
- Profitability factors analysis and interpretation
- Liquidity and working capital factors assessment
- Gearing and repayment capacity factors evaluation
- Integration of ratio analysis into comprehensive reports
- Documentation standards and presentation techniques
MODULE 5: CREDIT ANALYSIS REPORT ELEMENTS
- Identification and structuring of credit facilities
- Determining and articulating credit rationale
- Findings documentation from financial analysis
- Second way out strategies and collateral support evaluation
- Risk mitigation strategies development
- Basic loan pricing and margin considerations
MODULE 6: THE 5Cs OF CREDIT FRAMEWORK
- Character assessment and verification methods
- Capacity evaluation through financial analysis
- Capital adequacy and ownership structure review
- Conditions analysis including market and economic factors
- Collateral evaluation and second way out determination
- Practical application through case scenario analysis
MODULE 7: CREDIT ANALYSIS REPORT PRESENTATION
- Comprehensive report structure based on credit reporting elements
- “WeiJi” risk assessment methodology and application
- Group-based discussion and collaborative analysis
- Presentation skills for credit recommendations
- Stakeholder communication strategies
MODULE 8: ETHICAL CONSIDERATIONS IN LENDING
- Identifying and contextualizing potential breaches of ethics
- Analyzing specific events that can lead to ESG compliance issues
- Planning appropriate response strategies under different scenarios
- Regulatory compliance and ethical decision-making frameworks
- Case studies on ethical dilemmas in credit analysis
METHODOLOGY
- Case Studies: Real-world scenarios and actual lending situations for practical learning
- Hands-on Workshop Sessions: Interactive exercises and group activities
- Real-life Examples: Multiple applications of strategy tools and models from various industries
- Group Discussions: Collaborative learning and peer knowledge sharing
- Presentation Exercises: Skills development in communicating credit analysis findings
TARGET AUDIENCE
This program is customized for in-house training and is suitable for:
- Credit analysts and loan officers
- Branch managers and relationship managers
- Risk management professionals
- Banking supervisors and team leaders
- Financial professionals transitioning to credit roles
- Anyone involved in lending decision-making processes
Programme Schedule in HDRF Format:
| Time | Day One – dd/month/yyyy | Day Two – dd/month/yyyy |
|---|---|---|
| 0900 | Module 1: Types of Lending Situations | Module 5: Credit Analysis Report Elements |
| 1030 | Coffee Break | |
| 1050 | Module 2: Understanding Market Trends | Module 6: The 5Cs of Credit Framework |
| 1300 | Lunch Break | |
| 1400 | Module 3: Key Financial Ratios for Credit Analysis | Module 7: Credit Analysis Report Presentation |
| 1530 | Tea Break | |
| 1550 | Module 4: Financial Analysis Reporting | Module 8: Ethical Considerations in Lending |
| 1700 | End of Session | |