a framework for credit analysis加拿大著名咨询公司在建设银行的讲座4.pptVIP

Credit Analysis A Framework for Credit Analysis I. Risk Assessment II. The Client’s Funding Needs III. Loan Structuring IV. Loan Management I. Risk Assessment Monitoring the Economic Environment Analyzing Industry Conditions Assessing a Client’s Marketing Management Appraising the Client’s Operations Management Evaluating Management Capabilities and Character Analyzing the Borrower’s Financial Management Monitoring the Economic Environment Much of the risk associated with a loan is due to broad economic forces as shown on the next slide Lender must manage its exposure to certain types of businesses Lender may have to curtail lending, even to businesses with a good track record, in periods of economic adversity Necessary to monitor the current and forecasted economic environment The Economic Environment - Cont. Key elements of the economy Economic growth - the business cycle Inflation rates Interest rates - the level, term structure and risk structure Government - political trends and current fiscal and monetary policies International relationships - balance of payments, currency value, international markets The Economic Environment - Cont. It is important for the lending officer to keep on top of broad economic conditions because of their potential impact on the bank’s clients and the quality of the officer’s loan portfolio Analyzing Industry Conditions A borrower’s financial performance depends on: Current conditions and prospects for its industry How well the company is positioned relative to the competition? It is necessary to understand both the risks and opportunities for the major industry sectors in the bank’s market Determine two factors: Are the industry’s prospects attractive? Which types of firms are most likely to succeed in the industry? Analyzing Industry Conditions Banks now create portfolio management groups Monitor industry concentrations in the bank’s loan portfolio Determine future prospects for key industries Set limits on the maximum ex