This is a most important role in Nigerian banks process of financial intermediation to develop businesses and the economy. Banks raise funds from surplus units and lend to the deficit units to support the real sector for productivity.
To do this effectively, banks employee must acquire adequate knowledge of lending and credit administration as well as proper analysis of same.
This programme is therefore designed to provide participants with analytical skills that will enable them appraise sound lending propositions for management consideration and approval in order to enhance the bank’s bottom line.
At the end of this workshop, participants will be able to:
- Identify bank lending criteria and the decision-making process
- Develop skills in the presentation, analysis and interpretation of financial statements for lending decision
- Gain knowledge of credit portfolio management and reporting as well as problem loans resolution
- Gain knowledge of sound credit administration principles and procedures
- Identify the peculiar challenges (human and environmental) of lending in Nigeria and how to overcome them
- Identify appropriate financing options for credit customers
- Identify various frauds and how to prevent them
- Identify and implement various strategies necessary for detecting and recovering of bad debts
Module 1 - Introduction to Lending
- Definition of Lending
- Lending Concepts, Principles – 6Cs, Feasibility Analysis
- Lending Policies
- The Environment (Global, Political, Economic, Social Regulatory, Institutional and Technological) and it’s impact on lending business in Nigeria.
Module 2 - Financial Statement Analysis
- The interpretation and critique of financial statement (P & L Account, Balance Sheet, Cash Flow Statements)
- Ratio Analysis
Module 3 - Credit Risk Management
- Basic Principles, Policies and Processes (Identification, Measurement and Control)
- Preconditions for effective risk management
- CBN Credit Risk Management Framework
- Credit Bureau (CRMS and Credit Registries)
- Rating Agencies (e.g. Agusto & Co, Fitch, Standard and Purr’s)
- Internal Risk Rating Methodology – Status Enquiry.
Module 4 - Financing Options
- Loans – Short, Medium and Long term
- Bridging loans
- Equipment leasing
- Project finance
- Hire purchase
Module 5 - Securities for Bank Lending
- Secured credit transactions; concepts and law
- Types of securities
- Special type of secured credit
Module 6 - Credit Fraud
- Sources / types of frauds.
- Credit fraud prevention – strategies and tactics.
Module 7 - Credit Report Writing and Presentation.
- The need for report writing
- Techniques and sequence of presentation
- The key success factor – communication skills.
- Effective use of Audio Visual Aids in report writing and presentation.
Module 8 - Credit Administration
- Communication of credit approvals – terms and conditions.
- Monitoring and controlling of credit.
Module 9 - Management of Non-Performing Credit
- Definition, causes and identification of problem loans.
- Early warning signals.
- Loan workout and rescheduling
- Strategies of recovering of bad loans
- International Financial Reporting Standard (IFRS) requirements for loan loss provisioning.