This up-to-date course provides the knowledge and skills required to identify the credit needs of various types of business customers and to sell a “total Banking” relationship. It covers both the technical side of commercial lending and the interpersonal skills required to be a successful loan officer.
This AIB course covers qualitative analysis and how to assess industry risk, market risk and management risk. It also provides an understanding of the role of loan policy and the need to summarize the borrower’s various risks into an appropriate credit risk rating. In addition, it provides guidance on loan structuring and documentation issues in response to the analysis of quantitative and qualitative risks. This includes an overview of key documents, loan agreements and covenants, as well as negotiating and pricing. The course concludes with an introduction to problem loans.
After successfully completing this course, you will be able to:
• Recognize the process and types of information business bankers should acquire during a business development call
• Explain the importance of a credit investigation and describe what it entails
• Identify industry, market, and management risks that can affect a borrower
• Identify the key elements of a credit risk rating
• Describe the loan review process as an independent validation of risk ratings and other commercial lending issues
• Identify borrowing structures and describe their advantages
• Identify sources of repayment that are appropriate for various commercial loan borrowing arrangements & the factors that affect collateral value
• Describe the loan documentation process and requirements
• Identify and explain the loan negotiation process
• Identify the costs and causes of problem loans
• Explain the steps in resolving a problem loan