Credit

Loan is an asset to any financial institution. A bank normally maintains more than 60% of its loan portfolio under working capital. That is why it is very much necessary to ensure that a working capital loan does not become bad as it is normally not secured by other collateral security. These types of loans are secured by current assets and that are in the possession of the borrower themselves.

Loan is an asset to any financial institution. A bank normally maintains more than 60% of its loan portfolio under working capital. That is why it is very much necessary to ensure that a working capital loan does not become bad as it is normally not secured by other collateral security. These types of loans are secured by current assets and that are in the possession of the borrower themselves.

It is imperative for the banks to have a robust risk framework to manage all the risk associated with it and the management of credit risk begins at the origination itself. Managing the credit risk exposure within the framework of risk management (identification, measurement, monitoring and control) is of utmost importance for minimizing the losses arising out of the risks associated with credit. 

Considering this, the course has been designed to provide the participants an understanding of Credit Risk Management at the Branch level. 

 

Loan is an asset to any financial institution. A bank normally maintains more than 60% of its loan portfolio under working capital. That is why it is very much necessary to ensure that a working capital loan does not become bad as it is normally not secured by other collateral security. These types of loans are secured by current assets and that are in the possession of the borrower themselves.

 

Banking is an integral part of international businesses, where Trade Finance is one of the most lucrative businesses to any bank. Trade finance includes various kinds of loans, advances and facilities required for imports and exports deals that are made on foreign trade, and involve foreign exchange transactions. Letters of credit (LC) are most often used in international trade, governed by the Uniform Customs and Practice for Documentary Credits (or UCP), the rules of the International Chamber of Commerce.

Lending or advancing credit facilities is one of the core functions of banks and financial institutions. All employees engaged in credit related jobs should possess basic knowledge about the function before or at the time of assuming such role.

It is imperative for the banks to have a robust risk framework to manage all the risk associated with it and the management of credit risk begins at the origination itself. Managing the credit risk exposure within the framework of risk management (identification, measurement, monitoring and control) is of utmost importance for minimizing the losses arising out of the risks associated with credit. 

Considering this, the course has been designed to provide the participants an understanding of Credit Risk Management at the Branch level. 

 

Bank and Financial Institutions have been giving extra focus in growing Retail/ Consumer Lending in the recent days as it contributes in diversifying the risks and enhancing the customer base. Due to comparatively low risk weight age on retail loans, exception a few products; retail loans have been enabling the BFIs to enhance more loans with the limited available capital, which has been further helping them to maximize profitability.

 

Advancing credit facilities to small/medium enterprises is one of the major functions of banks and financial institutions (BFIs), particularly at their branch level.