Intermediate Credit Analysis & Management / 02-Jul-2018 - 06-Jul-2018

Intermediate Credit Analysis & Management

Bankers Committee members pay N 123,465.00 only

Background

The proper analysis of risk versus return is a decision that staff of financial institutions take with importance, on a day-to-day basis. This is because of the overall impact of these decisions on the overall performance and of their institutions. Participants on this programme will learn how to use a structured and systematic approach, to evaluate the credit standing of companies and assess the relative attractiveness of the risk-return profile, of the investing proposition.

Target Participants

This programme is designed for credit executives who are at the front office, credit origination and the independent reviewers in the middle office, as well as those being prepared for these roles in the near to medium term.

Objectives

At the end of the course, participants should be able to effectively:

  • Analyse the performance of a company based on qualitative and quantitative frameworks and tools
  • Identify the key factors that drive a company's future performance and evaluate likely impact on its credit standing
  • Evaluate through cash flow approach to ascertain a company's ability to service/refinance its debt as it comes due
  • Apply a structured approach to assess the creditworthiness of a corporate borrower
  • Utilize appropriate market indicators, where available to understand debt structures and the market view on a credit
     

Contents

  • Overview of the Financial System
    - Fundamentals of Banking (the roles of a bank in terms of mobilising deposits and providing lending)
  • The Operating Environment and its Impact on Lending Rationale (I)

- An overview of the macro economic environment
- Key macro vulnerabilities of developing markets: volatility of foreign exchange and
commodities, risk of high inflation, government intervention and general political risk
- Definition of Credit and an Overview of Legal Environment and Regulatory Guidelines on Credit
- Difference between business [corporate and small and medium enterprises (SMEs)] and retail credit
- Anti-money laundering/Counter-financing of terrorism (AML/CFT)
- Know your customer (KYC)

  • The Operating Environment and its Impact on Lending Rationale (II)

- Introduction to lending rationale
- Ethics and Principles of Credit (5Cs and the 6th C of Common Sense and the 7th C of Care for Environment).
- Types of Credit Products
- Different types of borrowers.
- Responsible Lending.

  • Industry Sectorial Analysis and Impact on Company Performance

- Industry structure, competitive forces and effect of industry growth drivers on
company performance
- Sales growth, including effect of inflation, foreign exchange and commodity
fluctuations, operating profit margins, working capital requirements and capital
expenditure
- Critical success factors needed to be addressed to sustain a competitive advantage in
the future

  • Evaluation of Business Strategy, Asset Investment Needs and Effect on
  • Cash Flows

- A company's markets, products, services and competitive position
- Corporate actions undermining its growth strategy
- Stages in the "life cycle" of a company and expectations of cash flow profile

  • Earnings Dynamics and Company Performance

- Strategic direction of the firm: sales and operating profitability, sources of
- operating cash-flow, trend and peer analysis
- Quality and stability of income stream and the cost base of the firm
- Effect of foreign exchange and commodity price fluctuations on profitability
- Ratio and cash flow analysis to evaluate performance within a group of sector peers
- Different accounting conventions and potential misleading reporting practices

  • Asset Management and Effect on Lending

- Cash conversion cycle and effect on asset needs
- Ratio and cash flow analysis
- Impact of asset investment on cash flow

  • Forecasting and Sensitizing Key Cash Flow Drivers

- Forecasting operating performance requirements using a basic excel model
- Forecasting asset investment requirements using a basic excel model

  • Solvency and Debt Service Capability

- Funding structure including off balance sheet obligations
- Debt servicing ability using cash flow analysis
- Ratio and cash flow analysis to evaluate the funding structure and debt servicing capability
- Debt capacity assessment: present value of future cash available for debt service

  • Financial Flexibility and Liquidity
    - Funding structures potentially increasing the refinancing risk and overall financial risk
    - Measuring liquidity or payment readiness
  • Assessing Impact of Management and Ownership on Lending

- Ownership/shareholder structure, support and influence
- Shareholder return requirements and measures used
- Corporate governance and transparency

  • Debt Structures
    - Overview of main elements of debt structures
    -The use of financial and non-financial covenants to mitigate risk
    - Pricing fundamentals: bond and loan prices
    - Market indicators of credit risk: credit ratings, bond spreads vs. rating curves, share price
  • Techniques for Recommending Credits for Approval

For more information: call Elizabeth: 0805 614 6873 or Email: ejohnson-oru@fitc-ng.com

Register Now

If you would like to attend this training programme, please fill the form below and we will contact you as soon as possible. You can also pay for courses online.




Our learning sessions are unique in 4 ways

  1. Programme design & delivery recognize the needs of adult learners in career
  2. Experience sharing by practitioners, with well over two decases of experience in areas relevant to course topic, whom we call "Programme Directors"
  3. Course delivery by practitioners based on conceptual research background
  4. The essence of our corproate brand and orientation within concept implementation thinking

The fees cover tuition, course materials, group lunch, tea/coffee and snacks but EXCLUDE accommodation.
Dress Code: Formal

Discount on Fees

3 participants 5% Discount
4 participants & Above 7.5% Discount


Payment of Fees

Payment of fees should be in cash or CERTIFIED CHEQUE/BANK DRAFT made payable to the FITC before the commencement date or on arrival at the venue.

Refund of Fees

Fees paid for participants who do not turn up eventually would be refunded, subject to deduction of 25% administrative cost.

Methodology

Formal lectures, case studies, participative group exercises and experience sharing.

Administration

The programme commences at 10.00a.m. on Monday, 9.00a.m other days and ends at 4.00p.m. daily.

In-plant Option

Do you intend to train more than 20 participants? Are you considering an in-plant option?
Please call us ☎


International Participants

International participants should please inform FITC of their attendance ahead of the programme, to enable us prepare airport pick-up for them.

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