Credit Analysis and Loan Pricing and Regulations Duration:

The credit crisis of the early 21st century has been a stark reminder to financial organizations of the inherent risks involved in extending large amounts of credit. Banks have revisited their credit procedures and have a renewed emphasis on credit analysis and pricing loans correctly to reflect the associated credit risks. A robust credit risk analysis process will ensure that banks can better judge the amount of credit risk that they are willing to undertake and what kind of measures they should take to protect themselves from such risks. It is also important for banks to understand lending regulations that are set up to protect them from holding illiquid assets and becoming insolvent. This course introduces the basics of credit analysis and the general process for conducting it. It then discusses the components of loan pricing and describes how banks' lending policies are regulated by the banking authorities.