The Credit Proces 银行贷款程序-1.pptVIP

The Credit Process Evaluate the quality of the credit process Learning Objectives Upon the completion of this module, you will be able to Describe the basic elements of a quality credit process Explain the importance of each component of the credit process Explain the critical importance of the identification, measurement and evaluation of risk in 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 Credit Process 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 Process (cont.) Credit Initiation Analysis Process Screen prospective customers in order to identify highest quality prospects Collect data for analysis of risks associated with prospective customers Analyse risks associated with prospective customers Using risk analysis as the basis, structure proposed credit facilities to maximize profit and minimize potential losses. Prepare well documented credit analysis package 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. Analysis of risks 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,