Commercial Banking and Credit Analyst Certification Training Course

Why select this training course?

Comprehending a loan portfolio’s working, maintenance, and construction is an essential tool in any current world business with such a volatile financial business environment. Any successful business has managed to understand how loans work while effectively managing them. Such knowledge is essential to small businesses and larger institutional organizations that offer loans. To survive in the loan business, any business will have to establish a robust system to give an element of pre- and post-planning for loan issuance, risk assessment, and credit analysis.

Credit professionals, now more than ever, are needed to establish a robust risk management framework that has a clear and established way of understanding an organization’s credit with well-established financial modeling systems. The professionals will also have to understand macro and micro issues impacting the credit trends.

What are the main roles of a credit analyst?

A credit analyst is a professional who assesses the creditworthiness of individuals, companies, or government entities seeking to borrow money. The main roles of a credit analyst include:

• Evaluating financial information
• Assessing credit risk
• Analyzing market conditions
• Making recommendations
• Monitoring loans
• Communicating with stakeholders

How can one ensure the risk portfolio of an organization is well managed?

First, define the organization’s risk management policies, processes, and procedures to develop a robust risk management system. Next, identify any market, credit, operational, and strategic risks the firm may face. Internal and external assessments considering the organization’s industry and environment should do this. After identifying risks, evaluate their likelihood and impact on the organization. This will prioritize risks and determine their attention. Risk management methods should be developed based on risk assessments. These strategies should include risk mitigation and contingency plans. The frameworks and strategies should be updated regularly to stay effective and relevant.

The Commercial Banking and Credit Analyst Certification Training Course by Rcademy will cover important knowledge and the necessary skills that are part of developing to be a better credit analyst. It will allow the participants to stand out as world-class and expert professionals in commercial banking or credit analysis. In addition, it will give them a better chance to gain a competitive edge in credit analysis and advanced knowledge with applicable skills to develop their careers confidently. This Rcademy training course will give the participants the ability to learn the necessary skills required to perform their daily duties, understand comprehensive credit risk analysis processes for organizations, carry out a quantitative assessment of any perceived and real financial risks, estimate the cost of debt in any organization, and carry out a qualitative assessment on financial risks.

Who should attend?

The Commercial Banking and Credit Analyst Certification Training Course by Rcademy is ideal for the following professionals:

• Credit analysts
• Branch managers
• Retail loan officers
• Risk manager
• Commercial loan broker
• Private equity analyst
• Corporate banker
• Business analysts
• Financial analyst
• Commercial loan officer
• Investment banker

What are the course objectives?

The Commercial Banking and Credit Analyst Certification Training Course by Rcademy has the objectives to enable participants to:

• Calculate a borrower risk rating using financial history
• Identify early warning signs of looming credit problems
• Understand and project cash flow cycles and a borrower’s working capital funding gap
• Recommend collateral security structure to mitigate a lender’s loan loss risk
• Build a dynamic, well-structured, and logically designed 3-statement financial model
• Understand various loan covenants and recommend appropriate use
• Explore and use industry data providers for sourcing benchmarking information
• Complete a formal credit, following every step
• Explain how macroeconomic factors affect borrowers’ future capacity to service debt obligations
• Understand the process behind credit documentation and use specific examples of loan agreements and guarantees examples
• Recommend the right adjustments to credit structure based on industry-specific risks
• Understand best practices and strategies used to assess a business’s management team
• Compare and contrast the various business structure and define the unique risks associated with lending each

How will this course be presented?

Like every other Rcademy course, this course will be facilitated by the industry’s best professionals using the following methods

• Presentations
• Short videos
• Lecture notes
• Discussions
• Case study

What are the topics covered in this course?

Module 1: Financial Analysis and Projections

• Business and industry analysis
• Loan funding techniques
• Development of a loan portfolio
• Balance sheet impact
• Asset management
• Marketing opportunities for loan portfolio development

Module 2: The 5 Cs in Credit

• Introduction to 5Cs
• Character
  – Overview of character
  – Assessing management character
  – Assessing the entire company’s character
• Collateral
  – Introduction to collateral
  – Quality of collateral
  – Case study
• Capacity
  – Cash flow statement analysis
  – Profitability and growth analysis
  – Assessing capacity
• Conditions
  – General business conditions overview
  – Assessing conditions
  – Analysing industry attractiveness
  – Competitive positions
  – Requirements and contract loan
• Capital
  – Assessing capital
  – Adequacy of working capital
  – Other sources of capital
  – Company main leverage

Module 3: Financial Statement Assessing

• Ratio and trends analysis
• Books of account
• Solvency ratios
• Adequacy of liquidity, control, and leverage position
• Cash flow analysis
• Spreadsheeting and analysis techniques
• Loss statements, balance sheets, and cash flow statement

Module 4: Cash Flow Analysis and Cycles

• Importance of cash flow
• Short-term vs long-term cash flow
• Cash flow cycles and analysis in Excel
  – Balance sheet
  – Financing activities
  – Operating activities
  – End-of-year cash flow equivalents
  – Investing activities
  – Operating cash flow cycle
  – Inventory
  – Accounts payable
  – Total working capital and operating working capital
  – Accounts receivables
  – Working capital cycles
  – Calculating payable, receivable, and inventory days
  – Funding gap and operating line calculations

Module 5: Lending Officer and Credit Analyst Roles

• Stakeholders and their priorities
• How to Develop a loan handbook
• The role of credit analyst
• The credit analysis process
• Loan interview techniques
• Regulatory issues
• The credit analyst’s network and resources

Module 6: A 3-Statement Model Development

• Model preview
• Types of financial models
• Financial models definition
• Forecast working capital and PP&E
  – Receivable days working capital equations
  – Payable days working capital equations
  – Forecast PP&E
  – Inventory days formula
• Review and audit
  – Change the assumptions to check the model
  – Check formula inconsistency
  – Model auditing tools in Excel
  – Auditing techniques
  – Pro precedents and auto-color sheet using mac abacus
• Forecasting revenues down to EBITDA
  – Forecasting revenues
  – Operating profits and revenue
• Model setup and assumptions
• Forecasting capital structure

Module 7: Risk Minimisation Using Credit Structuring

• Guarantor analysis
• Proper loan structuring recommendations
• Loan covenant considerations
• Analyzing collaterals

Module 8: Loan Pricing

• Introduction
• Revenue and profitability
• Debt vs equity
• Debt repayment profile
• Structure, pricing, and execution
  – Fixed vs floating rates
  – Committed vs uncommitted
• Client negotiations