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5 - FNB - Finance and Banking

FNB 204 - Credit Risk Management in Banking Sector

Code Start Date Duration Venue
FNB 204 08 May 2023 5 Days Istanbul Registration Form Link
FNB 204 03 July 2023 5 Days Istanbul Registration Form Link
FNB 204 28 August 2023 5 Days Istanbul Registration Form Link
FNB 204 23 October 2023 5 Days Istanbul Registration Form Link
FNB 204 18 December 2023 5 Days Istanbul Registration Form Link
Please contact us for fees


Course Description

Credit Risk as the major risk in banking business arises because of customer failure to meet his obligations in accordance with the agreed terms and conditions. This kind of risk can affect bank’s earnings and capital. 

This course will first recall all kinds of financial risks faced with banking business, and then will focus on credit risk in more details. By the end of this course, participants will have complete knowledge of techniques to identify the risks, how to assess credit risk by use of credit risk models for individual customers, corporate entities, and credit portfolio in general.

Course Objectives

  • Defininf and explaning the concept of the credit risk
  • Recalling an understanding of different risks in banking environment
  • Being able to efficiently and professionally control and manage the risks using different techniques
  • Gaining the self-confidence for reporting credit risks to the top managers
  • Offering a deep understanding of how banks manage the quality of their assets

Who Should Attend?

  • Bankers,
  • Risk Officers, 
  • External and Internal Auditors,
  • Anyone who wants to learn the credit risk concepts, risk modeling techniques,
  • Graduate and undergraduate students in business, finance, accounting, banking and the other related disciplines who want to join banking sector.

Course Details/Schedule

Day 1

  • Risks faced in Banking Sector, Risk Identification  
  • What are the reasons for risks in banking industry?
  • Risks faced by banks
  • Definition of credit risk
  • Is credit risk important for a bank?
  • Risks associated with lending activities
  • Credit culture and risk profile

Day 2

  • Credit Risk Analysis and Modeling, Risk Assessment 
  • What information is required for credit risk analysis?
  • Credit risk assessment tools
  • Customer risk assessment (LGD, EAD, PD, EL and UL concepts)
  • Credit portfolio risk assessment
  • Modern approach to assessing credit risk
  • Portfolio risk and return

Day 3

  • Controlling Credit Risk, Risk Mitigation 
  • Loan policy issues
  • Strategic planning for the loan portfolio
  • Loan portfolio objectives
  • Structured finance, Financial Covenants, Collateralization, Syndication, Limitation

Day 4

  • Credit Risk Reporting, Risk Monitoring
  • Risk Asset Review Reports
  • Early warning systems
  • Capture asset quality migrations
  • Trigger Actions (i.e. planning credit enhancement, reduction in exposures, exit strategy)

Day 5

  • Credit Risk Based Calculations
  • Risk based pricing
  • Risk based provisioning and capital requirements