对外经济贸易大学：《银行管理学 Bank Management》课程教学资源（授课教案课件）Chapter 09 Overview of Credit Policy and Loan Characteristics

卧的贸易孝 1951 Chapter 9 Overview of Credit Policy and Loan Characteristics

Chapter 9 Chapter 9 Overview of Credit Overview of Credit Policy and Loan Policy and Loan Characteristics Characteristics

The credit process The fundamental objective of lending is to make profitable loans with minimal risk. Management should target specific industries or markets in which lending officers have expertise. The somewhat competing goals of loan volume and loan quality must be balanced with the bank's liquidity requirements, capital constraints,and rate of return objectives. 猫行贺影小号

The credit process The credit process † The fundamental objective of lending is to make profitable loans with minimal risk. „ Management should target specific industries or markets in which lending officers have expertise. „ The somewhat competing goals of loan volume and loan quality must be balanced with the bank’s liquidity requirements, capital constraints, and rate of return objectives

The credit process Loan policy:formalizes lending guidelines Credit philosophy:how much risk and the form Credit culture:the fundamental principles Three potentially different credit cultures: ▣Values-driven Current-profit driven ▣arket-share driven 麓封强的黄香+孝

The credit process The credit process † Loan policy: formalizes lending guidelines † Credit philosophy: how much risk and the form † Credit culture: the fundamental principles „ Three potentially different credit cultures: † Values-driven † Current-profit driven † Market-share driven

The credit process The credit process includes three functions Business development and credit analysis Underwriting or credit execution and administration ■Credit review 的资5土号

The credit process The credit process † The credit process includes three functions „ Business development and credit analysis „ Underwriting or credit execution and administration „ Credit review

Business development and credit analysis ▣Market research Advertising,public relations ▣Office call programs Obtain financial statements,borrowing resolution,credit reports. Financial statement and cash flow analysis 目 Evaluate collateral Line officer makes recommendation on accepting/rejecting loan Five Cs of good credit and five Cs of bad credit 爸封强的黄香+孝

Business development and credit analysis Business development and credit analysis † Market research † Advertising, public relations † Office call programs † Obtain financial statements, borrowing resolution, credit reports. † Financial statement and cash flow analysis † Evaluate collateral † Line officer makes recommendation on accepting/rejecting loan † Five Cs of good credit and five Cs of bad credit