Financial Statement Analysis

With the rapid expansion of capacity and networks, Nepalese banks have been facing serious shortage of skilled manpower in all functional areas and more so in credit. As credit risk is by far the most dominant factor in bank failures, the importance of proper
Credit Risk Management System in a bank can hardly be exaggerated. And, good credit risk management always begins with making good loans. The course on ‘Comprehensive Commercial Lending’ has been designed to make the Relationship Managers, Senior Relationship Managers, Branch Managers, Risk Officers/Managers and any other interested employees learn the skills of making good commercial loans. Starting from understanding the cause of borrowing, the course focuses on identifying and weighing the financial and non-financial strengths and weaknesses of a business and the overall risk faced by the bank if the loan is made. Using the identified strengths and weaknesses, the participants will then learn the techniques of critically examining the projected financials on which the repayments are based. 

The course gives a particular importance to Risk Rating, its design and importance. Equally important, the participants will learn how to make presentation of the loan request in the form of Credit Memorandum/Proposal.The participants, divided in groups, will be given one dummy borrower with the required details and through exercises following each classroom topic; they will be analyzing the information (financial and non-financial) to identify the strengths and weaknesses of the borrower. Based on the analysis they will be doing risk rating of the borrower and will finally learn how to make the presentation (writing the CM) of the analysis.