Advanced Credit Administration

PURPOSE The participant will learn make a good road map to build and manage an effective credit administration area of the bank and to satisfy regulators' requirement to operating a safe and sound bank from a credit risk perspective. OUTLINE 1. Well Defined Credit Culture Established and Supported

• An Effective Loan Policy

2. Highly Effective Risk Assessment and Credit Underwriting System

• Choosing the right personnel to be Credit Analysts, Lenders or Loan Administrators
• Knowing  how to balance Risk and Rewards through proper credit, ratio and cash flow analysis
• Knowing how to report risk assessment by writing effective credit memoranda

3. Highly Effective Credit Committee

• Considers all pertinent information
• Allows members to express their opinion "freely"
• Records Minutes that matter

4. Utilize Credit Risk Rating To Identify Risk In The Loan Portfolio

• Clearly defining credit grades and applying them to various types of borrowers
• Utilizing a clear, objective and measurable loan grading system

5. Loan Documentation Procedures That Will

• Identify the Borrower's legal structure
• Identify, value and properly classify the collateral (emphasizing appraisal reviews)
• Evidence the debt outstanding
• Attach the bank's security interest in the collateral
• Perfect the bank's lien position in the collateral

6. Effective Loan Portfolio Management

• Defining the expectations of loan officers in the management of their loan portfolio
• Using Loan Agreements, Covenant Compliance Reports and other monitoring tools to manage the loan portfolio
• Adopting prudent commercial real estate loan workout strategies for problem loans

7. Calculating and Maintaining an Adequate Allowance for Loans and Lease Losses

• Reviewing and Documenting the methodology

  TRAINING  METHOD Presentation Discussion Case Study Evaluation   FACILITY Training Kit Handout Certificate Lunch + 2x Coffee Break Souvenir Pick Up Participant (Yogyakarta)