7 Class Hours

Instructor: Zach Neuman

Why this course is important:

Loans are typically the largest contributor to a bank’s revenue and the largest component of a bank’s balance sheet. However, with lending comes risk, making risk assessment and governance practices essential for maintaining a bank’s safety and soundness. Understanding the fundamentals of loan structures, credit assessment and underwriting processes is critical to making informed lending decisions that support both the bank and its customers. This course provides a foundational understanding of commercial lending, equipping participants with the skills needed to evaluate risk and contribute to responsible loan management.

This course is geared towards those individuals that have two or less years of experience in commercial lending. If you work in non-lending areas of your bank, or have primarily focused on retail or consumer lending, this course will work through the essential elements of commercial lending.

Key takeaways of this course:

• Why, on the surface, a loan may seem like a commodity but in fact may not be.
• Discuss the various loan types that banks offer, reviewing similarities and differences.
• Examine the 5 Cs of credit that are used to conduct a risk assessment on a loan and borrower, consider key ratios that are part of this assessment, and how these ratios may differ for different types of borrowers.
• Explore the broader loan underwriting process and some advancements that are being made from a technology and efficiency standpoint.
• Review the corporate governance that exists within banks and how this plays a key role in the oversight of the lending function.

 

Annual School Session 

First Year Core Course

Competency: Lending