mgmt3081 Course Outline

THE UNIVERSITY OF THE WEST INDIES
DEPARTMENT OF MANAGEMENT STUDIES
Credit Analysis and Lending (MGMT3081)

Semester 1 2022/23
COURSE DESCRIPTION
This course addresses the fundamentals of credit including analysis, administration and
risk management in the lending function of financial institutions. The principles and
practices of lending shall be explored from the institutional policies and regulatory
guideline. The analysis shall focus on quantitative and qualitative factors based on the
types of credits, their structure, characteristics, and risk profiles. The relevance and
importance of proper administration and risk management shall also be explored.
COURSE OBJECTIVES
To provide a comprehensive, practical approach to credit analysis, credit administration

and credit risk management. The course attempts to develop the participants’ ability to,
analyze financial and non-financial data/information from a credit perspective based on
internal policies and regulatory guidelines.
On completion of this course, students should:
Become familiar with the financial regulators, laws, regulations, and operational
procedures governing lending in T&T
Distinguish among credit products – purpose, characteristics, risk/return profile
Analyze credit proposals and make recommendation.
Perform financial analysis and evaluate credit risk profile.
Identify data limitations facing regional financial decision makers and approaches
adopted to overcome these challenges.
PRE-REQUISITES : Introduction to Banking, MS 28D (FM1)

CO – REQUISITES : None
STUDENT ASSESSMENT
(i) Course-work:
Class participation and assignments : 70%
In class exams : 60%
Participation : 10%
(ii) Final Examination : 30%
REQUIRED TEXT
Milind Sathye, James Bartle, Michael Vincent, Raymond Boffey - Credit Analysis and
Lending Management .
Recommended Readings:
Financial Institutions Act (1993)
Course Structure
This course is divided into three major sections:
A Principles of Lending, Analysis and Administration:
This section introduces the participants to the general principles in lending and
credit administration. The relevant financial and non-financial factors shall be
identified and analyzed from a credit perspective. Credit scoring and credit risk
analysis will be introduced.
B Consumer and Commercial/Corporate Lending:
This section deals with the analysis of consumer and commercial/corporate credits
based on their characteristics, structure and risk profiles. The analysis shall also
include policy, regulations and macroeconomic factors.
C Management of Credit Risk and Regulations:
The discussions will address the relevant regulatory guidelines in lending and
credit risk management. The management of credit risk in the loan portfolio shall
be the primary focus. Students are encouraged to read current issues and trends in
credit.
TEACHING LEARNING AND QUALITY ASSURANCE

Approaches to teaching:
 lectures
 active student participation
 regional case studies
 participation at seminars
 guest lectures
Class meetings
Lectures/tutorials: There will be three (3) hours of lectures each week. You are
required to read the assigned material prior to each class session. All class
discussions are premised on your adherence to the curriculum including the
assigned readings and assignments. You are expected to participate in class
discussions and all contributions should be relevant and focused. If you do not
understand what is being taught, please ask questions during the session or meet
with the lecturer during the office hours.
Please be advised that this course cannot be digested two to three weeks before
examination. You must keep abreast with the assigned readings, class discussions
and all assigned problems to understand the course for examination purposes and
industry. You are encouraged study other books and articles relevant to the
course.
Student Assessment
Class participation: 10%

Assignments: 60%
Final Exam: 30%
WEEK LECTURE TOPICS CH
Section A
1 Principles of lending and policy. 1

2 Financial analysis 2, 4

3 Credit Scoring Techniques 3

Section B

4,5 Consumer / Real Estate /Small Business Lending 5,6

6 Commercial Lending 8,9

7 International Lending 10
8 Collateral administration 7

9 Delinquent loans m’gt and recoveries 13

Section C

10,11 Credit Risk management 11

12 Regulations and supervision in Lending 12

13 Review and Make up

Tutorial Problems to be assigned in class

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THE UNIVERSITY OF THE WEST INDIES

DEPARTMENT OF MANAGEMENT STUDIES

Credit Analysis and Lending (MGMT3081)

To provide a comprehensive, practical approach to credit analysis, credit administration

On completion of this course, students should:

Distinguish among credit products – purpose, characteristics, risk/return profile

Analyze credit proposals and make recommendation.

Perform financial analysis and evaluate credit risk profile.

PRE-REQUISITES : Introduction to Banking, MS 28D (FM1)

(ii) Final Examination : 30%

Financial Institutions Act (1993)

This course is divided into three major sections:

A Principles of Lending, Analysis and Administration:

B Consumer and Commercial/Corporate Lending:

C Management of Credit Risk and Regulations:

TEACHING LEARNING AND QUALITY ASSURANCE

Class participation: 10%

WEEK LECTURE TOPICS CH

1 Principles of lending and policy. 1

4,5 Consumer / Real Estate /Small Business Lending 5,6

6 Commercial Lending 8,9

9 Delinquent loans m’gt and recoveries 13

10,11 Credit Risk management 11

12 Regulations and supervision in Lending 12

Tutorial Problems to be assigned in class

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