COURSE INFORMATION Course Title: LOAN MANAGEMENT AND CREDIT ANALYSIS

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 322	B	6	3	0	0	3	6

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Chrysanthi Balomenou , 9:30-17:30
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Classroom and Meeting Time:	E212
Course Description:	BAF 322- Loan Management and Credit Analysis: The aim of this course is to establish the conceptual foundations of corporate bank lending and to apply its principles to corporate lending decisions in financial institutions. The loan portfolio is generally the major asset category on a commercial bank’s balance sheet. The establishment and management of this asset require the understanding and application of appropriate techniques to achieve good loan quality, control, monitoring and management of risk factors to achieve loan repayment. This course prepares you in making sound lending decisions in your career to help your financial institutions achieve its corporate objectives as well as providing you with an insight into the credit analytical decision making process and the internal psyche of a corporate bank lender.
Course Objectives:	Identify the basic principles governing bank lending and explain their importance.Explain the importance of analysis of financial statements in lending decisions. Describe the various methods of analysis where project finance is involved.Explain the practical use for a credit scorecard. Explain the growth in consumer credit. Define credit risk. Analyse various approaches to credit risk analysis. Explain expert systems.Outline the major types of consumer loans. Explain how different types of consumer loan applications are evaluated. Explain the pricing aspect of consumer loans. Apply the principles of corporate lending. Explain the application of lending criteria. Explain the theory underlying small business finance, using the concepts of asymmetric information, credit rationing, adverse selection and moral hazard. Understand the issues of credit risk from the perspective of the regulators. Relate capital adequacy to credit risk considerations. Express the issues of large exposures. Explain why the business cycle is important for problematic loans. Define problematic loans, provisions and regulatory issues. Discuss the capital issues of problematic loans.

COURSE OUTLINE

Week	Topics
1	The Principles of Lending
2	Lending Basics
3	Financial Statement Analysis
4	The different phases of the Basel Capital Framework
5	Credit Risk Analysis
6	Consumer Lending
7	Midterm
8	Liquidity
9	Small Business Lending
10	Capital Adequacy
11	Capital Adequacy (Continuing)
12	Basel Capital Accords
13	Problematic Loan Management
14	Problematic Loan Management (continuing)

Prerequisite(s):
Textbook:	Credit analysis and lending management, 3rd edition, Milind Sathye, James Bartle, Raymond Boffey
Other References:	Principles of banking law, 3rd edition, Ross Cranston, Emilios Avgouleas, Kristin van Zwieten, Christopher Hare, Theodor van Sante. Credit Analysis, Walter S. Foster, 2017
Laboratory Work:
Computer Usage:
Others:	No

COURSE LEARNING OUTCOMES

1	Distinguish different types of borrowers and the special considerations that apply to them when giving loans
2	Describe the special techniques of analysis where project finance is involved.
3	Outline the process of building a credit application scorecard.
4	Explain expert systems. Ascertain credit risk from market-based spreads.
5	Describe how different types of consumer loan applications are evaluated. Explain the pricing aspect of consumer loans.
6	List the contents of the loan structuring proposal.
7	Analyze the importance of managing the loan portfolio.
8	State the main characteristics of a relationship managed approach to small business lending.
9	Identify credit derivative issues for regulators. Describe the credit rating process
10	Define problematic loans, provisions and regulatory issues. Discuss the capital issues of problematic loans.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way.	5
2	They have knowledge about the finance and banking.	5
3	They have knowledge about the money and banking.	5
4	They have knowledge about the international finance and banking.	5
5	They have ability to use mathematical and statistical methods in banking and finance.	4
6	They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department.	3
7	They have necessary banking and finance skills that needed in private and public sector.	5
8	They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking.	4
9	They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance.	5
10	They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics.	4

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Project	1	20
Final Exam	1	45
Attendance		5
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	16	16
Assignments	1	12	12
Final examination	1	16	16
Other	1	10	10
Total Work Load:			150
Total Work Load/25(h):			6
ECTS Credit of the Course:			6