(Available also for Customised Training by Duration, Venue & Fee)
This is a workshop on the significant role of Banking business which is financial intermediation. Banks raise funds from surplus units of the economy for lending to the deficit unit. It is a role that supports the economy for national development.
But lending is also to enhance the banks’ bottom line. Therefore, adequate knowledge of credit analysis and administration is very critical.
Participants with acquire analytical skills that will enable them appraise sound lending propositions for management consideration and approval.
At the end of this workshop, participants will be able to;
• identify bank lending criteria and the decision-making process
• develop skills in the presentation, analysis and the interpretation of financial statements for lending decision
• gain knowledge of credit portfolio management and reporting as well as problem loans resolution
• appreciate credit administration principles and procedures
• identify the peculiar challenges (human and environmental) of lending in developing countries
• identify appropriate financing options for credit customers
• identify various frauds and their mitigation
• identify and implement various strategies necessary for detecting and recovering of bad debts.
Module 1 – Introduction to Lending.
• Definition of Lending.
• Lending Concepts, Principles – 6Cs, Feasibility Analysis.
• Lending Policies
• The Environment (Global, Political, Economic, Social Regulatory, Institutional and Technological) and it’s impact on lending business in Nigeria.
Module 2 – Financial Statement Analysis
• The interpretation and critique of financial statement (P&L account, Balance Sheet, Cash Flow Statements)
• Ratio Analysis
Module 3 – Credit Risk Management.
• Basic Principles, Policies and Processes (Identification, Measurement and Control)
• Preconditions for effective risk management
• CBN Credit Risk Management Framework
• Credit Bureau (CRMS and Credit Registries)
• Rating Agencies (e.g. Agosto & co, Fitch, Standard and Purr’s)
• Internal Risk Rating Methodology – Status Enquiry.
Module 4 – Financing Options
• Loans – Short, Medium and Long term
• Bridging loans
• Equipment leasing
• Project finance
• Hire purchase
• International club lending
o Paris Club
o London Club
Module 5 – Securities for Bank Lending
• Secured credit transactions; concepts and law
• Types of securities
• Special type of secured credit
Module 6 – Credit Fraud
• Sources / types of frauds.
• Credit fraud prevention – strategies and tactics.
Module 7 – Credit Report Writing and Presentation
• The need for report writing
• Techniques and sequence of presentation
• The key success factor – communication skills.
• Effective use of Audio Visual Aids in report writing and presentation.
Module 8 – Credit Administration
• Communication of credit approvals – terms and conditions.
• Monitoring and controlling of credit.
Module 9 – Management of Non-Performing Credit
• Definition, causes and identification of problem loans.
• Early warning signals.
• Loan workout and rescheduling
• Strategies of recovering of bad loans
• International Financial Reporting Standard (IFRS) requirements for loan loss provisioning.