A loan is a type of debt representing a contractual promise by a borrower to repay a sum of money in exchange for the promise by a lender to give another sum of money.

US$104 per 365 days

 

What is Bank Lending:

A loan is a type of debt representing a contractual promise by a borrower to repay a sum of money in exchange for the promise by a lender to give another sum of money.

The history of loans can be traced back thousands of years at least, with basic forms of lending evident in ancient Greek and Roman civilizations. Lending remains a core activity of modern financial markets, with banks and other lenders offering many different types of loans to borrowers as diverse as individuals, commercial businesses, and governments. A well-functioning lending mechanism is essential for economic growth. That is particularly true in Europe, where businesses rely on bank lending far more than their US counterparts, which often bypass bank financing in favor of, for instance, issuing their corporate bonds.

While it's undoubtedly a fundamental part of both the banking business and the broader economy, lending is also inherently risky – more so than was generally recognized before the global financial crisis. Lending is now a matter of political and economic concern.

Why it is important:

Bank lending – and the associated credit analysis – is far more of an art than a science. While there is a scientific aspect to risk management tools such as credit risk models and scoring systems, as well as to the analysis of financial statements, a well-trained banker needs to understand much more than models and ratios to determine a borrower’s ability to repay an obligation.

Every lending decision requires that the borrower satisfies particular criteria. When it comes to deciding whether to lend, a number of fundamental questions must be asked in all cases. Who is the borrower? How much does the borrower require? What is the purpose of the loan? How long is it required? What is the source of repayment? Every lender will have a particular approach to addressing these questions.

What will you learn:

  1. Bank lending basics.
  2. Commercial and Industrial Loans.
  3. Accounts Receivable and Inventory Finance.
  4. Real Estate and Agricultural Loans.
  5. Retail Loans basics.
  6. The lending Cycle.
  7. Loan Originating and Underwriting.
  8. Loan Negotiation, structuring and Drawdown.
  9. Loan Administration and Repayment.
  10. Syndicated Lending Market Development.
  11. Syndicated Loans the Secondary Market.
  12. Provision and Acceptance.
  13. Loan Trading and Settlement Process.

Target audience:

Loan officers, credit analysts, and other credit personnel working in commercial and investment banks and undertaking an introductory credit risk training program.

Curriculum:

  1. Bank Leading: Basics
  2. Commercial and Industrial Loans
  3. Commercial Loans: Accounts Receivable and Inventory Financing
  4. Commercial Loans: Real Estate and Agricultural Loans
  5. Retail Loans: Basics
  6. Retail Loans: The Lending Cycle
  7. Loan Origination and Underwriting
  8. Loan Negotiation, Structuring, and Drawdown
  9. Loan Administration and Repayment
  10. Syndicated Lending: Basics
  11. Syndicated Lending: Market Development
  12. Syndicated Lending: Main players
  13. Syndicated Lending: The Process
  14. Syndicated Lending: Payment and Fees
  15. Syndicated Loans: The Secondary Market
  16. Collateral: Basics
  17. Collateral: Uses
  18. Collateral: Provision and Acceptance
  19. Collateral: Risks
  20. Collateral: Financial Assets
  21. Collateral: Nonfinancial Assets
  22. Credit Risk Mitigation Techniques
  23. Credit Risk Mitigation Techniques: Limits
  24. Loan Trading: Basics
  25. Loan Trading and Settlement Process
  26. Loan Trading: Transfers
  27. Loan Trading and Settlement: Issues
  28. Problem Loans: Identification
  29. Problem Loans: Causes and Prevention
  30. Problem Loans: Resolution

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