Lending Operations & Risk Management Syllabus

LENDING OPERATIONS AND RISK MANAGEMENT

Full Marks: 100

Module A: Introduction of Loan Portfolio Management in Financial Institution

Credit Planning, Policy and Vision, Complete Transaction.

Module B: Principles of Good Lending and Credit Process

Different Types of Borrowers and Loan Accounts, Selection of a Borrower, Loan Interviewing and Credit Investigation, Loan Sanctioning and Disbursement Process.

Module C: Commercial Lending Environment

Characteristics of a Good Credit Officer, Features of Good Loan Policies.

Module D: Basic Financial Analysis

Financial Statement Analysis, Financial Spread Sheet: Communize and Comparative Financial Statements, Cash Flow, Fund Flow, Ratio Analysis, Credit Scoring System.

Module E: Term Lending by Banks

Appraisal of Term Lending Cases, Technical Aspect, Marketing Aspect, Managerial Aspect, Financial Aspect and Economic Aspect, Cost of The Project and Means of Financing, Capital Budgeting Techniques, Internal Rate of Return (IRR), Economic Rate of Return (ERR), Cost-Volume-Profit Relationships.

Module F: Working Capital Lending

Requirements, Estimation and Techniques.

Module G: Financial Projection

Projected Financial Statements, Cash Budget.

Module H: Lending Risk Management

Concept and Technique, Credit Risk Grading (CRG) Techniques, Bangladesh Bank Guidelines and Regulations, Portfolio Risk Assessment and Management Technique, Asset Securitiesation, Credit Derivatives, Loan Syndication, Loan Sales etc.

Module I: Loan Structuring and Pricing

Module J: Modes of Charging Securities, Loan Documentation

Module- H: Follow-up, Repayment and Reporting, Problem Loans

References

1 Bedi, H.L. and V.K. Hardikar. Practical Banking Advances.

Institute of Banking Studies, India.

2 IBB guidelines and Circulars.

3 Morsman, Jr. Edgar M. Commercial Loan Portfolio Management. Robert Morris Associates, U.S.A

4 Ruth, George E. Commercial Lending.American Bankers Association, U.S.A.

5 Signoriello, Vincent J. Commercial Loan Practices and Operations.Bankers Publishing Company, U.S.A.

6 Simha, S.L.N. Credit Management.IFMR, Madras.