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TUTORIAL 1
1. Objective:
Give an introduction to the concept of credit risk and analysis and the lending process
followed by banks
Develop the ability to evaluate the principles of bank lending and their practical
application over a wide range of lending situations
Provide the knowledge on the theories related to credit analysis and approaches in credit
analysis and financial statements analysis
Build up skills in credit analysis in different customer segments and special types of
credits like consumer, real estate, corporate and small business loans
Develop an understanding of the critical elements of credit management, as applied by
the lending credit grantors, including the measuring and management of credit risk and
how lending facilities are established and controlled
Introduce the statutory and regulatory influences that condition the approach of credit
grantors as well as other bodies that contribute to the management of risk
Explain the impact of problem loans and identify other issues pertinent to credit analysis
and lending.
2. Learning Outcome:
3. Reading List
1. Sathye, M., Bartle, J., Vincent, M. &Boffey, R. (2003), Credit Analysis & Lending
Management, Wiley & Sons Australia Ltd, Sydney & Melbourne.
Additional Text:
1. Foo KokThye (2005), Principles of Lending, 1st ed., IBBM, Kuala Lumpur.
2. Colquitt, Joetta (2007), Credit Risk Management, 3rd ed., McGraw Hill, New York.
3. Gup, B. E., Avram, K., Beal, D., Lambert, R. &Kolari, J. W. (2007), Commercial
Banking The Management of Risk, Wiley & Sons Australia Ltd, Sydney & Melbourne.
4. Rose, Peter S., Sylvia C., Hudgins (2005), Bank Management & Financial Services, 6th
ed., McGraw Hill, New York.
5. Saunders A., Cornett M. M. (2006), Financial Institutions Management a Risk
Management Approach, 5th ed., McGraw Hill, New York.
6. Mays, Elizabeth (2004), Credit Scoring for Risk Managers: The Handbook for Lenders,
Thomson South-Western, Ohio.
4. Method of Assessment