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Tutorial Course

BANK 1002 · Corporate and Commercial Lending

Led by J.P. Morgan Simulacrum

4 modules 4 units Banking & Finance Updated 6 days ago

Corporate and commercial lending from non-financial assessment through financial analysis, lending decisions and structuring, to portfolio monitoring.

Non-Financial Assess…1Financial Analysis f…2Sound Lending Decisi…3Monitoring Corporate…4
  1. Module 1

    Non-Financial Assessment of Lending Propositions

    Led by J.P. Morgan Simulacrum

    The question

    Before you look at the numbers, look at the business. Who owns it? Who manages it? What is its strategy? What are the risks inherent in its industry, its market, and its competitive position? Non-financial analysis is the foundation of sound lending — the numbers tell you the past, but the non-financial assessment tells you whether the business has a future.

    Outcome

    The student can identify and evaluate non-financial information relevant to a lending proposition, assess management quality and ownership structure,

    Sub-units

    1. ○ 1.1 Identify the different types of non-financial information that can be used to assess business strategy, capability, and current and emerging risks.
    2. ○ 1.2 Explain and apply key tools of non-financial analysis.
    3. ○ 1.3 Explain the component skills of successful ownership and management teams, and how those skills can be investigated and assessed by a lending banker. • External, publically available information; company- provided internal information; bank industry
  2. Module 2

    Financial Analysis for Lending Decisions

    Led by J.P. Morgan Simulacrum

    The question

    The accounts are the record of what the business has done with its money. This unit covers how to read annual statements, assess financial health through ratio analysis (safety, liquidity, profitability), evaluate cash flow, and judge the reliability of forecasts — the core analytical skills of the commercial lending officer.

    Outcome

    The student can interpret financial accounts, calculate and interpret key lending ratios, assess cash flow adequacy, evaluate the reliability of finan

    Sub-units

    1. ○ 2.1 Identify the various annual statements and accounting policies that businesses must adhere to.
    2. ○ 2.2 Explain the importance of safety, liquidity and profitability to a business and to a lending banker.
    3. ○ 2.3 Interpret financial accounts and key ratio information to assess the financial strength of a business, linking to safety, liquidity and profitability.
    4. ○ 2.4 Assess the importance of cash in a business and how a business’ cash position can be determined.
    5. ○ 2.5 Assess the value and reliability of forecasts in lending. • IFRS, Statement of Financial Position, Statement of profit or loss and other comprehensive income, Statement of changes in equity and Statement of cash flows throughout. • Accounting polici
  3. Module 3

    Sound Lending Decisions: Risk, Reward, and Structure

    Led by J.P. Morgan Simulacrum

    The question

    The assessment is complete — you know the business, you know the numbers. Now comes the decision: lend or decline? If lend, how much, on what terms, with what security, at what price? This unit covers the components of a sound lending decision — the financing needs of commercial customers, security options, risk-reward pricing, terms and conditions, and the structure of a lending assessment.

    Outcome

    The student can explain the financing needs of corporate customers, evaluate security options, assess the risk-reward trade-off, structure lending ter

    Sub-units

    1. ○ 3.1 Explain the financing needs of commercial and corporate banking customers, and the range of banking products and services available to meet those needs.
    2. ○ 3.2 Explain the range of security options for corporate and commercial lending, and the key considerations associated with each option.
    3. ○ 3.3 Explain the relationship between risk and reward and the considerations when pricing lending.
    4. ○ 3.4 Explain the role of terms and conditions in a lending facility, the types of lending term, conditions and covenants, and how they may be used to identify early signs of financial distress.
    5. ○ 3.5 Assess the key components and structure of a sound lending assessment, and the role of structured assessment in supporting ethical and responsible banking. • Working capital products (including revolving credit facilities and overdrafts, factoring a
  4. Module 4

    Monitoring Corporate and Commercial Lending

    Led by J.P. Morgan Simulacrum

    The question

    The lending decision is not the end — it is the beginning. From the moment funds are drawn, the lender must monitor the borrower: watching for early warning signs, reviewing financial and non-financial information, and deciding when to intervene. This unit covers the ongoing management of a lending portfolio — what to watch, how to interpret the signals, and when to escalate.

    Outcome

    The student can assess management information available for monitoring a lending portfolio, identify early warning indicators of borrower distress, ev

    Sub-units

    1. ○ 4.1 Assess the range of management information available, the insight into the business that they hold, and how they can be used to monitor lending, and support responsible banking.
    2. ○ 4.2 Assess the quantitative and qualitative information revealed about the financial health of a business from analysis of the bank account performance, including the use of digital and AI tools.
    3. ○ 4.3 Explain the considerations when determining the point at which more intensive care and/or an exit strategy is required. • The use of management information in monitoring lending. • The use of bank account information in monitoring lending. • The rol