Analytical Techniques in the Assessment of Credit Risk

Analytical Techniques in the Assessment of Credit Risk
Author: Michalis Doumpos
Publisher: Springer
Total Pages: 115
Release: 2018-09-29
Genre: Business & Economics
ISBN: 3319994115

This book provides a unique, focused introduction to the analytical skills, methods and techniques in the assessment of credit risk that are necessary to tackle and analyze complex credit problems. It employs models and techniques from operations research and management science to investigate more closely risk models for applications within the banking industry and in financial markets. Furthermore, the book presents the advances and trends in model development and validation for credit scoring/rating, the recent regulatory requirements and the current best practices. Using examples and fully worked case applications, the book is a valuable resource for advanced courses in financial risk management, but also helpful to researchers and professionals working in financial and business analytics, financial modeling, credit risk analysis, and decision science.

The Practice of Lending

The Practice of Lending
Author: Terence M. Yhip
Publisher: Springer Nature
Total Pages: 468
Release: 2020-02-25
Genre: Business & Economics
ISBN: 3030321975

This book provides a comprehensive treatment of credit risk assessment and credit risk rating that meets the Advanced Internal Risk-Based (AIRB) approach of Basel II. Credit risk analysis looks at many risks and this book covers all the critical areas that credit professionals need to know, including country analysis, industry analysis, financial analysis, business analysis, and management analysis. Organized under two methodological approaches to credit analysis—a criteria-based approach, which is a hybrid of expert judgement and purely mathematical methodologies, and a mathematical approach using regression analysis to model default probability—the book covers a cross-section of industries including passenger airline, commercial real estate, and commercial banking. In three parts, the sections focus on hybrid models, statistical models, and credit management. While the book provides theory and principles, its emphasis is on practical applications, and will appeal to credit practitioners in the banking and investment community alongside college and university students who are preparing for a career in lending.

Creditworthiness Analysis. Instruments and Methods

Creditworthiness Analysis. Instruments and Methods
Author: Paul Sogrin
Publisher: GRIN Verlag
Total Pages: 33
Release: 2018-12-17
Genre: Business & Economics
ISBN: 3668855285

Seminar paper from the year 2014 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,7, University of Applied Sciences Saarbrücken, language: English, abstract: The following seminar papter superficially analyses the topic of creditworthiness analysis in order to provide the reader with the respective basics in regard to the topic. Finance is one of the main fields within the economics and the cornerstone both for the domestic and global businesses. Finance studies and investigates the opportunities in which individuals and enterprises source, allocate and use monetary funds and resources over time, considering the risks and the monetary developments such as inflation. It is a discipline that provides the monetary basis and structure for every kind of business. Finance is one the most path breaking and strategically essential business sectors. In order to comprehend the finance and the financial structure of the company an individual or a manager has to be capable to conceive the complete business structure of the enterprise. The importance of finance for the international and local business environment but also for private persons is therefore crucial. It is important to mention that finance is a very manifold doctrine with diverse variations, manifestations and a long historical development. Because of the previous mentioned manifoldness of finance it should be consequently said that there is a massive amount of strategies to manage and to acquire the necessary financial or monetary basis either for a corporate or for a private need. One of the most common and popular possibilities to acquire money for financing an investment, to pay the corporate debts or for the private purposes of a person, is to apply for a credit. Following to this fact it is relevant to emphasize that the credit-granting process is a very specific and complex procedure. The complexity of this process could be explained by different economic and political reasons. In order to maintain the stability of the financial markets, to protect the money-granting institutions or persons and the whole economic environment a credit cannot be granted without any guarantee and safeness for the back-paying. Henceforth the credit providing institutions and authorities use an analysis with the task to control the creditworthiness of credit users. The creditworthiness analysis was created within decades, shaped by different cultures and nations, affected by historical and economic mistakes and crises.

Commercial Lending

Commercial Lending
Author: Adrian Cudby
Publisher: Kogan Page Publishers
Total Pages: 353
Release: 2018-10-03
Genre: Business & Economics
ISBN: 0749482788

Endorsed by the Chartered Banker Institute as core reading for one of the modules leading to the Institute's professional qualifications and chartered status, Commercial Lending supports readers that wish to develop their ability to analyze the creditworthiness of a customer and their business in the context of the current economic climate, future market and sector expectations. Commercial Lending uses a series of practical exercises and case studies, and provides the tools needed for the reader to understand and appraise a customer's business strategy. This will then enable the reader to provide appropriate funding solutions to meet the commercial needs of customers while reflecting the bank's risk appetite. These tools include: how to assess the performance and creditworthiness of a business; how to critically evaluate the robustness of cash flow; and how to undertake sensitivity analysis to quantify sustainable debt repayment capacity. This practical text will present a critical analysis of financial and non-financial information to help readers identify key risks inherent in the customer's lending proposition. Readers will go on to propose suitable funding solutions that mitigate risk and meet the needs of customer and bank. Online supporting resources include a glossary and updates to regulation in the UK. All law and legislation used throughout the book (Chapters 1, 6 and 9) is either UK or English law. Readers outside the UK are recommended to check the appropriate legislation in their country. The currency used throughout the book is UK Sterling (denominated by £ symbol) and where working examples are used (particularly in Chapters 2 and 3) readers can substitute their own currency by using the appropriate exchange rate for their own country.

Financial Analysis, Planning And Forecasting: Theory And Application (Third Edition)

Financial Analysis, Planning And Forecasting: Theory And Application (Third Edition)
Author: Cheng Few Lee
Publisher: World Scientific Publishing Company
Total Pages: 1390
Release: 2016-08-10
Genre: Business & Economics
ISBN: 981472386X

This book is an introduction-level text that reviews, discusses, and integrates both theoretical and practical corporate analysis and planning. The field can be divided into five parts: (1) Information and Methodology for Financial Analysis; (2) Alternative Finance Theories and Cost of Capital; (3) Capital Budgeting and Leasing Decisions; (4) Corporate Policies and their Interrelationships; (5) Financial Planning and Forecasting.The theories used and discussed in this book can be grouped into the following classical theoretical areas of corporate finance: (1) Pre-M&M Theory, (2) M&M Theory, (3) CAPM, and (4) Option Pricing Theory (OPT). The interrelationships among these theories are carefully analyzed. Real world examples are used to enrich the learning experience; and alternative planning and forecasting models are used to show how the interdisciplinary approach can be used to make meaningful financial-management decisions.In this third edition, we have extensively updated and expanded the topics of financial analysis, planning and forecasting. New chapters were added, and some chapters combined to present a holistic view of the subject and much of the data revised and updated.

Revisiting Risk-Weighted Assets

Revisiting Risk-Weighted Assets
Author: Vanessa Le Leslé
Publisher: International Monetary Fund
Total Pages: 50
Release: 2012-03-01
Genre: Business & Economics
ISBN: 1475502656

In this paper, we provide an overview of the concerns surrounding the variations in the calculation of risk-weighted assets (RWAs) across banks and jurisdictions and how this might undermine the Basel III capital adequacy framework. We discuss the key drivers behind the differences in these calculations, drawing upon a sample of systemically important banks from Europe, North America, and Asia Pacific. We then discuss a range of policy options that could be explored to fix the actual and perceived problems with RWAs, and improve the use of risk-sensitive capital ratios.

Accounting and Valuation Guide

Accounting and Valuation Guide
Author: AICPA
Publisher: John Wiley & Sons
Total Pages: 619
Release: 2019-09-16
Genre: Business & Economics
ISBN: 1948306638

Developed for preparers of financial statements, independent auditors, and valuation specialists, this guide provides nonauthoritative guidance and illustrations regarding the accounting for and valuation of portfolio company investments held by investment companies within the scope of FASB ASC 946, Financial Services —Investment Companies, (including private equity funds, venture capital funds, hedge funds, and business development companies). It features16 case studies that can be used to reason through real situations faced by investment fund managers, valuation specialists and auditors, this guide addresses many accounting and valuation issues that have emerged over time to assist investment companies in addressing the challenges in estimating fair value of these investments, such as: Unit of account Transaction costs Calibration The impact of control and marketability Backtesting