Practical Applications of Credit Analysis Case Studies

Course details

In this course, participants will acquire the skills and knowledge to assess compliance of a bank’s credit activities with the bank’s own credit policy and Egyptian bank lending legislation and regulations. Participants will work on numerous case studies to apply knowledge acquired. The course will also cover key executive statutes of the Law on the Central Bank and the Banking System No. 88 of 2003 governing the lending process and relevant regulations issued by the Central Bank of Egypt.

Course Description:

In this course, participants will acquire the skills and knowledge to assess compliance of a bank’s credit activities with the bank’s own credit policy and Egyptian bank lending legislation and regulations. Participants will work on numerous case studies to apply knowledge acquired. The course will also cover key executive statutes of the Law on the Central Bank and the Banking System No. 88 of 2003 governing the lending process and relevant regulations issued by the Central Bank of Egypt.

Course Objectives:

• Review the Egyptian bank lending legislation.
• Describe the stages and information requirements of the credit process.
• Explain the risks associated with each type of financing.
• Describe the lending controls imposed to reduce the risks associated with each legal form of business entity.
• List the types of collateral provided for credit facilities.
• Assess the performance of corporate management.

Course Outline:

Module 1: An Overview of Bank Lending Legislation in Egypt

• An overview of the Law on the Central Bank and the Banking System No. 88 of 2003
• Circular No. 7 dated 19/5/2007 of the Central Bank of Egypt on the rules governing credit registration
• Cheque Law No. 17 of 1999
• The main principles of credit risk classification in the amended Central Bank of Egypt Circular No. 321 governing creditworthiness

Module 2: Credit Process Stages and Requirements

• Stages of the credit process
• Required information for the credit analysis
• Content of the credit memo
• Periodic loan monitoring and coordination with the information department

Module 3: The Main Lending Controls and Associated Risks

• Various types of financing
• The risks associated with each type of financing
• The lending controls that must be implemented to reduce credit risk
• Case studies

Module 4: Legal Forms of Business Entities and Lending Controls

• Legal forms of business entities – corporations, etc.
• Risks associated with the different legal forms
• Lending controls imposed to reduce the risks associated with each legal form
• Case studies

Module 5: Collateral Provided for Credit Facilities

• Types of collateral provided for credit facilities
• Risks associated with collateral provided for credit facilities
• The collateral restrictions imposed under credit facilities
• Case studies

Module 6: Assessing Borrower Management Performance

• The fundamentals of assessing borrower management performance
• The asset conversion cycle
• Financial ratios as a tool for monitoring and evaluating the utilization of credit facilities
• Case studies

Assessment Strategy:

Participants will be informally assessed on their interaction during sessions and their participation in exercises