CREDIT AND INVESTMENT TRAINING PROGRAMS

To succeed in China's increasingly competitive markets, banking and investment professionals need to understand and use international "best practice" concepts and analytical skills to answer the key credit and investment questions:

(1) How should we decide who to lend to, or in which companies or projects to invest?
(2) How can we identify and assess all risks, and assign risk ratings?
(3) If we lend or invest: how much, under what terms and conditions, and at what price?
(4) How should credit exposures and investments be monitored to avoid problems & losses?
(5) What can we do for customers to win new business?

The training program outlined below provides the necessary international "best practice" concepts, analytical tools and methodology to correctly make these decisions.


Credit Analysis: Lending and Investment Principles, Including Case Studies

• Risk vs. return; the credit decision and investment decision process

• Macroeconomic influences; the effect of economic cycles
• Industry Analysis: industry sectors; creating financial statement expectations; industry and product life cycles; risk analysis
• Management; evaluation of quality, depth and breadth; risk analysis
• Business Risk Analysis: supply and product markets; determining keys to success and key risks; risk analysis
• Financial Statement Analysis: factors affecting reliability; ratio analysis fundamentals; common size, trend and comparative analysis; spreading and using spreadsheet tools; liquidity; leverage; working capital, working investment, and financial structure; profitability; measuring financial efficiency; understanding the relationships among profitability, leverage and liquidity; analyzing direct and indirect cash flow statements.
• Borrowing Cause and Investment Needs Analysis: determining true causes underlying borrowing or investment needs; estimating needs
• Seasonality and the Cash Cycle: working investment; cash cycle and repayment capacity analysis
• Cash Flow and Repayment Capacity: analyzing cash flow quality and demands on cash
• Financial Projections: approaches and applications; alternatives of projecting full spreadsheets or using a simplified repayment capacity model; sensitivity analyses and interpretation; assessing future cash flow, repayment capacity, and investment returns
• Credit and Investment Limits
• Determining Risk Ratings: quantitative and qualitative factors; balancing all factors
• Structuring Loans and Investments: facility types; loan support; terms and conditions; pricing; borrowing base lending
• Writing Credit Approval Applications or Investment Recommendations
• Loan and Investment Monitoring: frequency and focus; recognizing danger signs and developing problems
• Advanced Corporate Finance And Banking Topics: Project and structured finance; Discounted cash flow analysis; Capital markets and bonds; Interest rate risk in bank operations; gap analysis; Value At Risk and using VAR to set exposure and trading limits; Risk-adjusted return concepts; Rating agencies; their function and processes.

Accounting for Credit and Investment Managers

• Financial statement basics: the balance sheet, income statement and cash flow statement

• Principles of accrual accounting; identifying financial statement risk
• The asset conversion cycle: the operating cycle and the capital investment cycle
• Understanding cash flow