TheCreditPr0cess银行贷款程序.pptxVIP

The Credit Process;Evaluate the quality of the credit process;The borrower’s current and expected financial condition The borrower’s ability to withstand adverse condition or stress The borrower’s credit history and a positive correlation between historical and projected repayment capacity The optimal loan structure, including loan amortization, covenants, reporting requirements for the underwriting elements;Collateral pledged by the borrower – amount, quality and liquidity; bank ability to realize the collateral under the worst case scenario Qualitative factors, such as management, the industry and the state of the economy;Credit Initiation Analysis Process;Analysis of risks associated with any borrower should focus on the four foundations of creditworthiness: Industry: involves the industry dynamics and the company’s position within the industry. Weakness in the industry itself can significantly impact loan repayment ability and the company’s position within the industry is an important issue.;Financial condition: focuses on the borrower’s ability to generate sufficient cash, the first source of loan repayment, or to draw on existing resources, e.g., capital or assets, to repay bank borrowings. The credit analyst examines the income statement, the balance sheet and the cash flow statement to evaluate this foundation of creditworthiness, focusing on profitability, efficiency, liquidity, and leverages in particular.;Management Quality: entails the competence, integrity and alliances of the key individuals running the company. Management weakness or dishonesty can have an impact on both repayment capacity and security realization. Depth of management is always a concern, especially in smaller, family-run organizations. ;Security Realization: determines the level of the bank’s control over collateral and the likely liquidation value, factoring in time, i.e., net present value. Weakness in security realization threatens the second source of loan repayment.;Credit un