Banking Credit Analysis Process (for Bankers) from Udemy

Are you struggling in understanding banking credit related matters like Financial Ratio Analysis, Cash Flow and Fund Flow Analysis, Working Capital Assessment and products like Cash Credit, Letter of Credit, Bank Guarantee, Buyers Credit, Term Loan appraisal covering Debt Equity Analysis?

Are you a Finance Professional working on Project Funding for your clients?

Are you finding it difficult to write down a comprehensive loan proposal?

Are you a Banker aspiring to rise to top in your career?

Then this course is for you - Banking Credit Analysis Process.

Why you should take this course?

Credit Analysis is the core process adopted by any Bank to understand, evaluate and appreciate about the Customers Identity, Integrity, Financial Position, - Repayment Capacity, Etc.
Every Banker should be thorough with Credit Analysis Process because day in day out they have to deal with new customers and before sanctioning any new loans to them, Banker should have made detailed study of their customers.
No Banker can raise to top unless he becomes conversant with Credit Analysis Process.
Bank would generally throw employees on to the job before they get opportunity to be trained. This is with more specific reference to Credit Analysis where Bankers should under detailed learning process, else their mistakes in the process will be Very Costly beyond their manageable Position.
Hence, this course will provide platform to Bankers to have fall back reference on the Critical Aspects of Credit Analysis Process. Banking/ Management Consultants can also use this course for the equipping themselves to the expectations of the Bankers while handling Credit Proposals.
By taking this course, you will be able to Write Bank Loan Proposals with better clarity and confidence.
You will understand various technical matters written in Bank Loan Proposals.

What you will learn by taking this course?

By taking this course, you will be exposed to

Sec 1 - Introduction to Credit Analysis

Sec 2 - Financial Statements reading skill

Sec 3 - How to write Loan Proposal - Introduction

Sec 4 - Financial Ratio Analysis

Sec 5 - Performance and Financial Indicators Analysis in Loan Proposal

Sec 6 - Fund Flow Analysis for Identifying Diversion of Funds

Sec 7 - Cash Flow Analysis for Understanding Cash Generation and Movement

Sec 8 - Inter-firm Comparison, Internal & External Rating and Review of Conduct of Accounts

Sec 9 - Review of Audit Reports, Compliances, Contingencies and Risk Factors

Sec 10 - Finer Pricing, Review of Defaulters List & Loan Polichy

Sec 11 - Types of Business Loans

Sec 12 - Working Capital

Sec 13 - Cash Credit

Sec 14 - Non Fund Based Credit Facilities

Sec 15 - Letter of Credit

Sec 16 - Bank Guarantee

Sec 17 - Project Report

Sec 18 - Term Loan Appraisal

Sec 19 - DSCR & FOIR Computation in Term Loan

Sec 20 - Break Even Analysis

Sec 21 - Sensitivity Analysis

Sec 22 - Credit Rating

Sec 23 - Credit Scoring

Sec 24 - Key Analysis by Bankers

Sec 25 - Marginal Cost of Funds based Lending Rate (MCLR)

Sec 26 - Export Credit

Sec 27 - Terms of Payment in Export Transactions

Sec 28 - Export Finance

Sec 29 - CMA (Credit Monitoring Arrangement)

Sec 30 - Computerised Accounting System

Sec 31 - Banking Operations

Sec 32 - Operational Aspects of KYC

Sec 33 - Loan Accounts

Sec 34 - Quiz

Sec 35 - Import Finance

Sec 36- Other Banking Products

How this course is structured?

This course is structured in self paced learning style. Each and every section of this course is broken down as various micro lectures and then they are substantiated with examples and case studies. Several real world examples are used in this course through case studies. You'll gain authority on each and every topic as i take you through lectures one by one. This course is presented in simple language with examples. This course has video lectures (with writings on Black / Green Board / Note book / Talking head, etc). You would feel you are attending a real class.

What are the pre-requisites for taking this course?

You would require good internet connection for interruption free learning process - You can approach this course with fresh mind.

How this course will benefit you?

At the end of the course, you will be able to approach credit related matters in your bank with high level of confidence and solve real life problems at ease.

What's inside

Learning objectives

Understand what is credit analysis
How to evaluate credit proposal
How to analyse financial statements
How to analyse term loan projects
Understand what is project financing

How to arrive at working capital
What is working capital cycle
What is letter of credit
What is bank guarantee
Understand, detailed process of credit analysis

Understand what is credit analysis
How to evaluate credit proposal
How to analyse financial statements
How to analyse term loan projects
Understand what is project financing
How to arrive at working capital
What is working capital cycle
What is letter of credit
What is bank guarantee
Understand, detailed process of credit analysis

Syllabus

Introduction to Banking Credit Analysis Process

Welcome Lecture

This course also provide Banking Credit Products, Working Capital, Long Term Products, Fund Based, Non Fund Based. This Course Covered Buyers Credit, Term Loan, DSCR etc..Credit Analysis Process is a course for Bankers who need to make detailed study of customer's identity, integrity, financial position, repayment capacity.

Know Your Customer, alternatively known as know your client or simply KYC, is the process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship.

The Structure of a Balance Sheet A company's balance sheet is comprised of assets, liabilities and equity. Liabilities are what a company owes to others - creditors, suppliers, tax authorities, employees, etc. They are obligations that must be paid under certain conditions and time frames.

Ratio analysis is an accounting tool, which can be used to measure the solvency, the profitability, and the overall financial strength of a business, by analysing its financial accounts (specifically the balance sheet and the profit and loss account).

Liquidity ratios measure the relationship between the amounts of short term capital that the firm has locked in its receivables versus the short term interest free debt it has acquired in the form of accounts payables.

The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. Current assets like cash, cash equivalents, and marketable securities can easily be converted into cash in the short term.

The fund flow statement is used for analysing the causes of financial position changes in the assets and liabilities between two balance sheets. This fund flow statement provides the fund details which were acquired and used in the past. Depending on its details, an administrative head can take significant actions.

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Read about what's good

what should give you pause

and possible dealbreakers

Provides bankers with a framework for understanding and evaluating credit proposals, which is essential for making informed lending decisions and managing risk

Covers a wide array of credit products, including cash credit, letters of credit, bank guarantees, and term loans, which are commonly used in the banking industry

Explores the nuances of financial statement analysis, including ratio analysis, fund flow analysis, and cash flow analysis, which are critical for assessing a borrower's financial health

Includes guidance on writing comprehensive loan proposals, which is a valuable skill for bankers seeking to advance in their careers and effectively communicate credit risk assessments

Examines topics such as credit rating and scoring, which are used to evaluate creditworthiness and manage risk in lending portfolios

Features content on KYC (Know Your Customer) policies and compliance, which are essential for preventing financial crime and maintaining regulatory standards

Reviews summary

Comprehensive banking credit analysis

Based on the course description, this course aims to provide a comprehensive overview of the banking credit analysis process, targeting bankers and finance professionals. It appears to cover a wide range of topics, from financial statement analysis and ratio calculation to specific loan products like Cash Credit, Letter of Credit, Bank Guarantee, and Term Loans, including their appraisal and associated calculations like DSCR and Break Even Analysis. The structure suggests a self-paced learning style with micro lectures, examples, and case studies designed to feel like a real class. The course emphasizes building skills to write bank loan proposals and approach credit matters with confidence.

Features varied video lecture formats.

"The mix of talking head and board lectures felt like a real class."

"Different video styles kept it somewhat engaging."

"Some may find the presentation style less modern."

Well-suited for bankers and finance professionals.

"As a banker, I found the content highly relevant."

"Great course for those working in or aspiring to banking credit roles."

"Addresses the specific needs of banking professionals."

Includes examples and case studies for practical learning.

"The examples and case studies helped apply concepts."

"Learning how to write a loan proposal was very practical."

"Felt like I was gaining skills directly applicable to my job."

Course covers a wide range of credit analysis areas.

"The course covered so many topics relevant to credit analysis."

"I learned about everything from KYC to different loan products."

"It provides a broad foundation across various banking credit functions."

Covers many topics, potentially sacrificing depth.

"While broad, some advanced topics could use more depth."

"Felt a bit introductory in certain specialized areas."

"Could benefit from deeper dives into complex analysis techniques."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Banking Credit Analysis Process (for Bankers) with these activities:

Review Financial Statement Basics

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Solidify your understanding of financial statements to better grasp credit analysis concepts.

Browse courses on Financial Statements

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Review the basic components of a balance sheet, income statement, and cash flow statement.
Practice identifying assets, liabilities, equity, revenue, and expenses in sample statements.
Understand the relationships between the three financial statements.

Read 'The Interpretation of Financial Statements' by Benjamin Graham

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Gain insights into financial statement interpretation from a renowned investment expert.

View The Intelligent Investor, 3rd Ed.: The... on Amazon

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Read the chapters on balance sheet analysis and income statement analysis.
Focus on Graham's principles of conservative accounting and risk assessment.
Apply the concepts to real-world company examples.

Read 'Financial Statement Analysis' by Subramanyam and Wild

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Enhance your understanding of financial statement analysis techniques used in credit decisions.

View Outlines & Highlights for Financial Statement... on Amazon

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Read the chapters on ratio analysis and cash flow analysis.
Work through the examples and practice problems in the book.
Relate the concepts to real-world credit analysis scenarios.

Three other activities

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Analyze Sample Loan Proposals

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Sharpen your credit analysis skills by evaluating real-world loan proposals.

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Obtain sample loan proposals from public sources or industry contacts.
Analyze the borrower's financial statements, ratios, and cash flow projections.
Assess the borrower's repayment capacity and identify potential risks.
Write a brief summary of your findings and recommendations.

Build a Credit Scoring Model

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Apply your knowledge to create a practical tool for assessing creditworthiness.

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Identify key financial ratios and other factors that predict loan defaults.
Gather historical data on loan performance and borrower characteristics.
Develop a scoring model using statistical software or spreadsheet tools.
Test the model's accuracy and refine it based on the results.

Analyze a Company's Creditworthiness

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Consolidate your learning by conducting a comprehensive credit analysis of a real company.

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Select a publicly traded company in an industry of interest.
Gather the company's financial statements and other relevant information.
Analyze the company's financial ratios, cash flow, and debt structure.
Assess the company's management team, industry outlook, and competitive position.
Write a report summarizing your findings and recommendations regarding the company's creditworthiness.

Career center

Learners who complete Banking Credit Analysis Process (for Bankers) will develop knowledge and skills that may be useful to these careers:

Credit Analyst

A credit analyst evaluates the creditworthiness of individuals and businesses, determining the risk involved in lending money. This course helps anyone looking to become a credit analyst. The course, Banking Credit Analysis Process, provides a solid grasp on financial statement reading, ratio analysis, and fund flow analysis, all essential components for assessing credit risk. Sections on loan proposal writing and key analysis by bankers directly translate to the daily tasks of a credit analyst. Furthermore, understanding various loan types and credit facilities covered in the course builds a strong foundation for making informed credit decisions. By covering areas like financial statement analysis and loan proposal construction, this course makes you fully ready to begin working as a credit analyst.

See salaries and explore the career path for Credit Analyst

Credit Risk Manager

Credit risk managers identify, measure, and manage credit risk within a financial institution. The Banking Credit Analysis Process course is a valuable resource for building a strong understanding of credit risk management principles. As the course explains various aspects of credit analysis, you'll become conversant in identifying, measuring, and mitigating credit risk. You will also become exposed to the finer points of pricing, default review, and loan policies. By studying the various sections of this course, you will become a valuable asset to any company that needs a credit risk manager.

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Loan Officer

Loan officers evaluate and authorize approval of loans to individuals and businesses. The Banking Credit Analysis Process course is an ideal starting point for aspiring loan officers. This course offers modules dedicated to financial statement analysis, ratio analysis, and understanding various types of business loans. The ability to analyze financial statements, covered extensively in the course, is crucial for assessing an applicant's ability to repay a loan. Understanding the nuances of cash credit, letters of credit, and bank guarantees, as taught in the course, equips loan officers with practical knowledge for handling diverse loan applications. You will learn how to write Bank Loan Proposals.

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Credit Officer

Credit officers are responsible for evaluating and managing the credit risk exposure of a financial institution. The Banking Credit Analysis Process course will lead to success for credit officers. The course provides a comprehensive understanding of credit analysis techniques, financial statement analysis, and risk assessment methodologies. Specific attention is given to understanding the diverse landscape of financial instruments. Mastering these topics helps credit officers make informed decisions about lending and risk mitigation. You will also learn to create loan proposals.

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Commercial Lender

Commercial lenders provide loans and other credit facilities to businesses. This course provides vital insights to those looking to become commercial lenders. The course builds a strong foundation in assessing the financial health and creditworthiness of businesses, essential for sound lending decisions. The curriculum includes detailed modules on financial ratio analysis, cash flow analysis, and working capital assessment, directly applicable to evaluating commercial loan applications. The sections on writing loan proposals and understanding different types of business loans, such as term loans and lines of credit, also allow the commercial lender to excel in their role.

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Underwriter

Underwriters assess the risk of insuring individuals or assets, determining appropriate coverage and premiums. The Banking Credit Analysis Process course helps in understanding the complexities of financial risk assessment. The course modules on financial statement reading, ratio analysis, and risk factor reviews provide a framework for evaluating the financial stability of potential clients. The course's focus on identifying potential risks and understanding credit analysis processes equips underwriters with the knowledge to make informed decisions about insurance coverage and pricing. Underwriters will be well-versed in reviewing audit reports.

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Relationship Manager

Relationship managers maintain and grow relationships with a portfolio of bank clients, understanding their financial needs and offering appropriate solutions. Relationship managers benefit from the Banking Credit Analysis Process course since it enables them to better understand their clients' financial positions and offer relevant products. The course provides a solid foundation in financial statement analysis, working capital assessment, and various credit facilities. Understanding a client's creditworthiness and financial needs also allows relationship managers to tailor solutions that meet their objectives, ultimately strengthening the bank-client relationship. The modules dedicated to KYC (Know Your Customer) are also relevant to a relationship manager.

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Credit Reviewer

Credit reviewers evaluate loan portfolios and assess the quality and risk of existing loans within a financial institution. The Banking Credit Analysis Process course is directly relevant to the work of a credit reviewer, enhancing their ability to identify and mitigate potential risks. The course's in-depth coverage of financial statement analysis, ratio analysis, and fund flow analysis provides a framework for evaluating the financial health of borrowers. An understanding of loan policies and risk factors, as taught in this course, enables credit reviewers to assess the overall quality of the loan portfolio and recommend corrective actions when necessary. Credit Reviewers learn about reviewing defaulters list.

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Portfolio Manager

Portfolio managers oversee investment portfolios, making decisions about asset allocation and risk management. The Banking Credit Analysis Process course helps those portfolio managers who wish to incorporate credit risk analysis into their portfolio strategies. The course delivers a foundational understanding of credit analysis, financial statement interpretation, and the assessment of risk factors. By studying this course, portfolio managers can refine their approaches to credit risk management, making them exceptional at their jobs.

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Auditor

Auditors examine financial records and internal controls to ensure accuracy and compliance. The Banking Credit Analysis Process course provides auditors with a deeper understanding of credit processes and risk assessment. The course provides insights into how banks evaluate creditworthiness, manage loan portfolios, and assess financial risks. Understanding the credit analysis process enables auditors to better evaluate the financial health and stability of financial institutions and their borrowers. Auditors will be able to improve internal controls.

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Compliance Officer

Compliance officers ensure that a company adheres to laws, regulations, and internal policies. The Banking Credit Analysis Process course is valuable for compliance officers working in the financial services industry. The course helps them better understand the regulatory landscape surrounding credit analysis, lending practices, and risk management. Specifically, it provides insight into KYC policies. Knowing how banks assess credit risk and manage loan portfolios enables compliance officers to ensure that their institution's practices align with regulatory standards and internal guidelines.

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Finance Manager

Finance managers oversee the financial health of an organization, managing budgets, investments, and financial reporting. The Banking Credit Analysis Process course may be useful for finance managers who need to understand how lenders assess their company's creditworthiness. The course helps in interpreting financial statements from a lender's perspective, understanding key ratios used in credit analysis, and anticipating potential concerns raised by lenders. The course's focus on cash flow analysis and working capital management also provides insights into improving a company's financial performance and attractiveness to lenders. This course allows for proficiency in computerised accounting systems.

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Financial Planner

Financial planners advise individuals and families on managing their finances, including investments, retirement planning, and debt management. The Banking Credit Analysis Process course can be helpful for financial planners seeking to better understand credit products and their impact on clients' financial well-being. The course will give financial planners insight into products like credit cards, mortgages, and personal loans. Developing this expertise allows financial planners to offer more informed and comprehensive advice to their clients, helping them make sound financial decisions. With an understanding of loan policies, planners will be able to counsel their clients more effectively.

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Treasury Analyst

Treasury analysts manage a company's cash flow, investments, and financial risk. The Banking Credit Analysis Process course may be useful, providing a lens into how financial institutions evaluate credit risk. The course provides a framework for understanding financial ratios, cash flow patterns, and the impact of debt on a company's financial health. The course's focus on financial statement analysis and risk assessment helps treasury analysts make informed decisions about managing the company's financial resources and mitigating potential risks. Treasury analysts can better prepare for interactions with lenders.

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Financial Controller

Financial controllers oversee the accounting and financial reporting processes of an organization. The Banking Credit Analysis Process course may be useful to financial controllers who would like to improve their understanding of banking credit operations. The course helps understand how banks and other lending institutions view their financial statements and assess their creditworthiness. The course modules on financial ratio analysis and risk assessment provides a new perspective on how financial controllers can optimize their financial reporting practices to improve their company's standing with lenders. They can better anticipate the implications of financial decisions in relation to credit availability.

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Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Banking Credit Analysis Process (for Bankers).

Outlines & Highlights for Financial Statement...

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Provides a comprehensive guide to understanding and interpreting financial statements. It covers ratio analysis, cash flow analysis, and other key techniques used in credit analysis. It is commonly used as a textbook in finance courses and provides a deeper dive into the concepts covered in the course, making it a valuable reference tool.

Outlines & Highlights for Financial Statement...

Paperback

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Outlines & Highlights for Financial Statement...

Kindle Edition

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The Intelligent Investor, 3rd Ed.

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This classic book provides a framework for understanding financial statements from an investor's perspective. While geared towards investors, the principles of analyzing financial health and identifying key risks are directly applicable to credit analysis. provides a solid foundation for understanding the underlying principles of financial statement interpretation.

The Intelligent Investor, 3rd Ed.: The Definitive...

Hardcover

Banking Credit Analysis Process (for Bankers)

What's inside

Learning objectives

Syllabus

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Reviews summary

Comprehensive banking credit analysis

Activities

Career center

Reading list

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