Avaliable as an in-house course only                                                                                                             

Course Overview

This course aims to cover the portfolio levels issues in the various divisions of the Banks. Primary focus will be on the corporate lending arena and in the private bank leading on to the credit risk management relating to industry, and country risks.

Participants will cover credit risk management techniques as department heads of syndication teams, sector-heads etc. Emphasis will be on practical issues relating to arriving at credit policies in a bank. The concepts and methodologies developed in advanced IRB ( Internal risk Rating Based-approach) capital requirements of Basel 2 will be covered.

The course seeks to cover the credit risk management in various stages of growth of the Bank, the different approaches taken in the corporate, consumer and private bank, the techniques involved in managing a merger between banks and the steps taken in managing the recovery situation when there are significant bad debts.

Course Content

Day One

Introduction
Convergence of Capital Measurement and Capital Standards
Banking Securities and financial Subsidiaries
Insurance Entities
Commercial Entities - big industrial Groups

Minimum Capital Requirements
Regulatory Capital
Risk-Weighted Assets
Constituents of Capital- Tier 1, Tier 2 and Tier 3
Detailed Analysis for the various products

Credit Risk
Standardised Approach
Treatment of off balance Sheet items
Advanced Credit Mitigation Techniques
Dealing with the principles behind the mathematics
Guarantees and Derivatives

Portfolio credit risk
Syndicated deals
Managing the credit risk
Stress Testing
Valuing the portfolio
Securitised deal

Day Two

Corporate, Sovereign and Bank Exposures
Derivation of Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD)
Correlation
Maturity Adjustments
Risk Weights for Specialised Lending
High Volatility Commercial Real Estate
Capital Requirement for Hedged and Unhedged Exposure

Ratings Approach
IRB Model
External Rating Model
Product and Facility rating
Efficiency vs Risk
Group Study: Example of defining the rating model for housing loans, credit cards, SME loans, property development loans. Use of Excel and Power Point necessary for presentation

Preparation of Credit policy
Participants are expected to bring their banks credit policies for discussion
Organisation Structure
Delegation of Authority
Checks and Balances
Flow of Credit request
Real strength of collective decision making
Main constituents in arriving at a Credit Policy of a Bank
Dynamic monitoring

Restructuring Assets
Provisioning
Estimate of Hair-cuts
Determinants
Value of distressed asset
Managing debt equity swaps, credit derivatives etc
Investigative auditing

PDF of course outline - Please note that tailoring is possible


IF YOU HAVE ANY QUESTIONS ABOUT THIS SEMINAR PLEASE WRITE TO US AT post@redcliffetraining.co.uk

Please click here if you wish to be added to our mailing list for notification of forthcoming training courses