Credit Risk Management for Micro Deposit Taking Institutions and Commercial Banks
INTRODUCTION
Taking credit risk is part and parcel of financial intermediation. Yet, the effective management of credit risk by financial intermediaries is critical to institutional viability and sustained growth. Failure to control risks, especially credit risk, can lead to insolvency. However, too often, the mere perception of high credit risk can dissuade financial intermediaries from entering a particular market segment when a large contributing factor to that perception may be lack of adequate credit risk evaluation and management techniques.
Course Objectives
- Identify the key elements of credit risk
- Analyze the micro-financial drivers of credit risk and macro-economic factors which impact system-wide credit risk
- Explain modelling techniques for assessing credit risk
- Demonstrate proficiency with different methods and tools for credit scoring
- Demonstrate the usage and risks of credit derivatives
- Apply collateral management techniques to credit derivatives exposures
Target group
Commercial banks; Credit only MFIS, Deposit taking microfinance banks, Microfinance deposit-taking institutions, credit risk managers.