Credit risk of business from the bankers' perspectives - Workshop 2018

This workshop series focuses on risk factors which might commonly occur in international trade finance and the roles of the banks in the transactions. It will also facilitate the participants to understand the financial numbers beyond accounting, the practical use of financial ratios, and key considerations in establishing credit terms from credit risk perspectives.

Key topics covered:

Session 1: Basic Lending Principles (10 May)

• What are the key pillars inside a bank? Any difference in lending appetite between local and foreign banks?
• Reviewing the four major lending principles: 5Cs, PARTLAMPS, PARSER and CAMPARI
• Introduction to bilateral loan, syndicated loan, project finance and derivative hedging facilities offered by bankers

Session 2: Assessing the creditworthiness of Borrower from Financial and Non-Financial Considerations (17 May)

• Understanding the operating and industry risk assessment from bank lenders' perspectives
• Evaluating financial performance beyond accounting
• Determine the appropriate debt level of a company using Debt Capacity Model
• Case Studies

Session 3 : Issues to be considered for International Trade Financing (7 Jun)

• Common settlement methods on international trade and its respective Pros & Cons
• Hazard of global trade: Reasons and Examples
• Usual risks encountered by traders or manufacturers
• Roles of banks in handling these problems and the current ICC practice
• Other suggestions to the buyers and suppliers

Session 4: Reviewing key credit terms and conditions of the Loan Facilities (14 Jun)

• Analysis of key credit terms for loan facilities: pricing, financial covenants, affirmative and negative undertakings, collaterals
• Understanding pricing consideration, types of collateral and guarantee from the lender’s perspective
• Reviewing the terms sheet and facility letter

Trainers profile:

D Tang has over 20 years of experience in risk management and product risk analysis at various leading US and European investment and corporate banks. His product coverage ranges from trade finance to syndicated loans, derivatives and structured products, and leveraged financing for corporate (SME and corporate) banks, financial institutions and funds in Greater China and SE Asia region. D Tang is experienced in providing both internal and external training to various investment and corporate banks, government supervisory bodies, and various professional institutes. He is also an author of an investment book.

S Lai is holding with two master degrees and two professional qualifications. He has over 25 years of banking experience in credit and marketing functions. He has been involved and dealt with borrowing customers of MME, SMEs, traders, manufacturers, securities house in Hong Kong/Macau/Guangdong Province.

Learning objectives

• Understand credit assessment with particular emphasis on evaluating the risks associated with lending to corporations from various industries
• Recognise lending mnemonics from bank lenders' perspectives
• Apply financial analysis beyond accounting for lending purpose
• Identify basic features of international trade financing adopted by bank lender
• Analyse key documentation issues and related credit considerations of terms and conditions

Audience

This workshop series is suitable for finance professionals, accountants, relationship managers, investors, and anyone who want to gain more market updates on latest credit methodologies, lending principles and analytical tools commonly used by lenders.