Course Overview

RMA Lending Academy I provides training in basic core skills for commercial lending and credit risk analysis. This introduction to commercial lending and credit risk analysis will help participants better understand what their customers need in order to run a successful business and what the bank needs in order to make sound lending decisions.

     

Duration

30 hours

Delivery

Instructor-Led Online

Program Level

Foundational

 

Prerequisites

A basic understanding of accounting is recommended. Participants must complete the pre-course accounting assignment before class.

 

 

Who Will Benefit?

Credit risk professionals who are new to banking or commercial lending including new hires, branch managers, business development officers, and relationship officers who are required to read financial statements and tax returns.

   

Learning Objectives

Upon completion of this course, participants will be able to:

• Describe the financial accounting process, including Generally Accepted Accounting Principles (GAAP).
• Prepare the four financial statements required under GAAP.
• Connect various industry and business characteristics with financial profiles.
• Determine a company's potential financial product need from its position within the business' life cycle.
• Apply client interview techniques to determine the viability of a loan request.
• Ask questions about performance trends reflected in key financial statements to highlight key risk points.
• Complete financial statement trend and ratio calculations and analyze the results.
• Construct a Uniform Credit Analysis (UCA) cash flow statement and analyze the results. Connect a company's qualitative profile to financial statement trends.
• Create loan structures that match borrowing needs to repayment sources.
• Evaluate tax returns to identify product sales opportunities and determine items relevant to cash flow analysis.

Methodology:

This course actively involves participants by including group activities and questions to enhance the understanding of the basic credit analysis skills needed for commercial lending. RMA Lending Academy I is based on two cases: a cardiology clinic and a tile manufacturer. Each case is designed to provide the information needed to develop participants' basic core skills for commercial lending and credit risk analysis.