Credit Operations and Management (COM)
Credit Operations and Management (COM)
Full Marks: 100
Module A: Introduction of Loans and Advances
- Types of Borrowers and Loans & Advances, Customer-Banker Relationship
- Credit facility application process, Credit Planning, Policy, and Procedures
- Credit Cycle (Investigation to Exit), Features of a Good Credit Policy
- Centralized credit model vs. Branch Based Banking Model
- Qualities of a Good Borrower, Features of a Good Credit Proposal
- Consumer credit, CMSME, Agricultural credit, Corporate Finance, Trade financing, Refinancing, Offshore & Syndicated Financing, Project Financing
Module B: Principles of Sound Lending and Credit Process & Investigation
- Principles of Sound Lending, Client Selection, 5 Cs, CAMPARI, etc.
- Understanding borrower’s business, Loan interviewing, Site visit
- Investigation sources, CIB analysis, Credit rating from ECAIs
- Credit risk identification and mitigation, Collateral valuation
- Financial statement analysis and ratio analysis
- Internal Credit Risk Rating System (ICRRS) - quantitative & qualitative factors
- Single Borrower Exposure, Loan Pricing, Risk Premium, Loan Structuring
- Industry analysis and analysis of priority and discouraged sectors
Module C: Term Loan and Working Capital Financing
- Appraisal: Technical, Marketing, Organizational, Financial, Economic, Social & Environmental Aspects
- Cost of Project, Means of Financing, Capital Structure, WACC
- Capital Budgeting Techniques: Payback, ARR, NPV, IRR, Sensitivity Analysis
- CVP Analysis, Break-Even Point, Margin of Safety
- Working Capital Assessment, Components of WC, Operating Cycle
- Assessment techniques per Bangladesh Bank Circular
Module D: Credit Risk Management
- Bangladesh Bank CRM Guidelines and Regulations
- Quantitative and Qualitative Analysis
- Symmetric & Asymmetric Information, Risk Matrix, Decision Making
- Loan Sanctioning, Covenants, Management Action Triggers
Module E: Credit Documentation and Administration
- Primary & Collateral Security, Charge Documents, Guarantees
- Insurance coverage: Single and Joint – Importance and defects
- Methods of Security Charge: Pledge, Hypothecation, Mortgage, Lien, Assignment, Set Off, Pari-Passu, Negative Lien
- Documentation and legal aspects of charge creation and security
Module F: Supervision and Follow-up of Loans and NPL Management
- Loan monitoring techniques, Account inspection, Fund utilization
- Detection and management of Non-Performing Loans
- Early Alert Process, Exit Strategy, Loan Classification & Provisioning
- Rescheduling, Restructuring, Write-off Process
- Call-back Procedures, Recovery from various securities
- Legal recovery: Suit filing, decree execution, loan recovery strategy
Module G: Leasing and Hire Purchase
- Lease financing: types and forms, economics of leasing
- Hire purchase financing agreements
- Leasing vs. Hire Purchase: Customer’s and Bank’s Perspective