Credit Analysis for Bank Loan Decision Making

 

Teaching Hours and Credit Allocation: 18 hours, 4 credits
Course Assessment: Coursework

 

Aims

The aim of this course is to learn how financial and cash flow analysis tools can aid in credit decisions and in applying credit analysis techniques/models (e.g. logistic regression) to determine the firm´s probability of default and thus evaluate the firm’s riskiness.

 

Learning Outcomes

  • To learn how financial and cash flow analysis tools can aid you in credit decisions
  • To be able to apply credit analysis techniques/models (e.g., logistic regression) to determine the firm´s probability of default and thus evaluate the firm’s riskiness
  • To learn how to tie risk management, credit and financial analysis to Basel Accord
  • To understand how daily actions can reduce or mitigate credit risk, market risk and operational risk
  • To understand need, usefulness and major components of the Basel II & III Accord
  • To learn how to tie credit analysis to the software applied by financial institutions for credit analysis purposes (Moody’s Credit Scoring Model)

Content

  • Emphasis on real world issues related to the credit & financial analysis, risk management and Basel II & III Accords
  • Learning experiences from recent bankruptcies worldwide (e.g. Lehman Brothers, GM etc.)
  • Application of specially designed financial/credit analysis software to Greek/ international firms / bank clients
  • Application of credit analysis software techniques (e.g., logistic regression analysis) to real firms to determine the firm´s riskiness
  • Basel II & III Accord and credit analysis