DAIBB-PAPER 2 : LENDING OPERATIONS AND RISK MANAGEMENT


Full Marks : 100

Module A : Introduction of Loan Portfolio Management in Financial Institution

                       Credit Planning, Policy and Vision, Complete Transaction.

Module B : Principles of Good Lending and Credit Process

           Different Types of Borrowers and Loan Accounts, Selection of a Borrower, Loan Interviewing and Credit Investigation, Loan Sanctioning and Disbursement Process.

Module C : Commercial Lending Environment

                   Characteristics of a Good Credit Officer, Features of Good Loan Policies.

Module D : Basic Financial Analysis

          Financial Statement Analysis, Financial Spread Sheet: Communize and Comparative Financial
       Statements, Cash Flow, Fund Flow, Ratio Analysis, Credit Scoring System.

Module E : Term Lending by Banks

Appraisal of Term Lending Cases, Technical Aspect, Marketing Aspect, Managerial Aspect, Financial Aspect and Economic Aspect, Cost of The Project and Means of Financing, Capital Budgeting Techniques, Internal Rate of Return (IRR), Economic Rate of Return (ERR), Cost-Volume-Profit Relationships.

Module F : Working Capital Lending

          Requirements, Estimation and Techniques.

Module G : Financial Projection

          Projected Financial Statements, Cash Budget.

Module H : Lending Risk Management

          Concept and Technique, Credit Risk Grading (CRG) Techniques, Bangladesh Bank Guidelines and Regulations, Portfolio Risk Assessment and Management Technique, Asset Securitiesation, Credit Derivatives, Loan Syndication, Loan Sales etc.

Module I : Loan Structuring and Pricing

Module J : Modes of Charging Securities, Loan Documentation

Module- H :  Follow-up, Repayment and Reporting, Problem Loans

References:

1    Bedi,  H.L.   and  V.K.   Hardikar. Practical  Banking  Advances.
       Institute  of  Banking       Studies, India.
2    IBB guidelines and Circulars.
3    Morsman,  Jr.  Edgar  M.  Commercial   Loan   Portfolio   Management.
      Robert  Morris Associates, U.S.A
4    Ruth, George E. Commercial Lending. American Bankers Association, U.S.A.
5    Signoriello,  Vincent J. Commercial Loan Practices and Operations.
      Bankers Publishing Company, U.S.A.
6    Simha, S.L.N. Credit Management. IFMR, Madras.