Training Course in Credit Risk, Loan Guarantees and Security Interests
1Summary
A loan is only as safe as the guarantee behind it. Banks extend credit every day, but the real test of a lending relationship comes when a borrower defaults, and that is exactly when the quality of the underlying guarantee decides whether the bank recovers its money or takes a loss.
This course, delivered by the Arab British Fellowship Training Academy, gives banking professionals a practical grounding in how credit functions inside a bank branch, how loans and advances are evaluated, and how guarantees, mortgages included, are structured, secured and enforced.
2Objectives and target group
Who Should Attend?
- Bank managers and senior executives.
- Credit and lending officers.
- Anyone seeking to understand how banks handle loans, advances and guarantees.
What You Will Learn:
- Get an overview of the credit function at a bank branch.
- Apply financial analysis techniques to loan evaluation.
- Understand the principles and procedures governing lending.
- Identify the guarantees associated with the lending process.
- Handle credit documentation and penalties.
- Apply credit control and loan recovery practices.
- Classify assets based on performance.
3Course Content
Module 1: Why Guarantees Matter in Bank Lending
- The importance and key features of guarantees.
- Precautions to take when issuing guarantees.
- Importance, qualities and classification of guarantees in bank credit.
Module 2: Transferring and Securing Interests
- The role of transfer of ownership in transferring interest in a security interest.
- The main forms of fees and creation of securities.
Module 3: Mortgages as Bank Collateral
- Basic requirements for establishing a mortgage as a guarantee for the bank.
- Characteristics of different types of mortgage.
- Advantages and disadvantages of mortgage as a form of guarantee.