Kaplan

Introduction

It is important for bankers to realise that credit does not end with disbursement of the loan or activation of the facilities. After the birth of each credit, it has to be monitored effectively to ensure that the bank is able to detect early signs of credit deteriorations. Often, it is misconceived that the quality of a credit relationship is only deteriorating when it starts to default on the obligations. This course will enable the participants to learn how to recognise credit deterioration even when the conduct of account is satisfactory.

Learning Outcomes

At the end of the programme, participants will be able to:

• Appreciate the components of a good credit system & the required catalyst to make the system effective
• Understand the embedded assumptions made at credit birth & how these are critical risk points to assess in credit monitoring
• Effectively monitor the on going cash flows, profitability & relationships of the borrower to identify any signs of credit deterioration
• Identify early warning signals of deterioration and potential problems to avoid a possible non performing loans

Who Should Attend

• Relationship Officers/Managers
• Account Officers/Managers
• Credit Officers/Managers
• Credit Support Officers/Managers
• Any officer involved in the credit process who needs some appreciation in credit monitoring

Pre-Requsite(s)

• Participants should have a basic understanding of financial statements
• Delegates are required to bring along a financial calculator for this course

Course Outline

• Review Credit Process or System
  - Good Vs Effective Credit System
  - Components of a Good System
  - Catalyst for an Effective System
• Understanding the Embedded Assumptions when Credit is Birth
• Post Disbursement or Activation Monitoring
  - Critical Risk Points to Assess in Credit Monitoring
• Key Areas to Monitor to Identify Signs of Credit Deterioration
  - On Going Liquidity or Cash Flows of the Business
  - On Going Profitability of the Business
  - On Going Relationships of the Business
• Business' Dynamics Affecting Its Daily Cash Needs
  - Determining a Business' Net Working Capital or Daily Cash Needs
  - Dynamics That Cause Changes in Daily Cash Needs
  - Circumstances of Changes in Business' Dynamics
  - Effects of Changes in Business' Dynamics
  - Communication of Changes in Business' Dynamics
  - Signs of Overtrading
  - Use of Projected Cash Flow Statement in Credit Monitoring
• Business' Dynamics Affecting Its Profitability
  - Basic Terminologies
  - Examine Effects of Changes in Volume, Costs & Price on Profitability
  - Determine Breakeven or Desired Profit Positions
  - Importance of Sales Mix
• Implications of Various Generic Strategies in Profitability Management

Course Date

16 - 18 August 2010

Trainer

Dr. Johnny Tan / Lee Soon Juay / Lee Heok Seng

Fee

S$2,700.00 (exclusive of GST)