Banks don't fail because they make loans — they fail when too many of those loans stop being repaid and nobody has a legal playbook ready for it. As lending volumes grow in pursuit of profit, so does the exposure to default, and institutions that wait until a loan is already non-performing to think about their legal options are usually too late.

This course by the Arab British Fellowship Training Academy prepares legal and banking professionals to recognise the warning signs of default early, apply the preventive measures that keep a legal affairs department ahead of the problem, and pursue the legal remedies available once a debt has actually gone bad — all while balancing a bank's lending activity against its exposure to risk.

Course Objectives:

• Understand banking operations and the nature and sources of non-performing loans.
• Identify the legal methods used to resolve bad debts.
• Apply preventive approaches to non-performing loans, and know the best ways to address them legally once they occur.
• Put in place preventive legal measures within a company's legal affairs department.
• Balance a bank's lending and borrowing operations against its risk exposure.

Target Audience:

• Managers and directors of companies and institutions.
• Employees responsible for legal departments in commercial firms.
• Managers of legal and legal affairs departments across companies.
• Legal officers and businessmen wishing to develop their legal skills.
• Employees in legal management.
• Law students, graduates and trainee lawyers.

Module 1: Understanding Bank Lending and Its Risks

• General overview of financial and banking loans.
• The nature of bank loans and the risks they carry.

Module 2: How Loans Turn Bad

• The phenomenon of non-performing loans and the reasons behind their increase.
• The concept of non-performing loans and the types of default.
• Types of financial default.

Module 3: Containing the Damage — Prevention and Legal Remedy

• The partial effects of default on a bank's legal and financial position.
• Methods of preventing non-performing loans and the ways to treat them once they occur.