Evaluating Credit Risk – Private Banking

Evaluating Credit Risk – Private Banking



Course Overview This comprehensive entry level credit analyst training program teaches participants how to determine the cash flow of individuals, assess risk related to assets, income, and net worth, and make sound lending decisions.  The program includes a combination of pre-work, lectures, group case exercises reflecting actual lending situations, after-class assignments, and a final capstone case study.   


After-class assignments are evaluated by the instructor with written feedback provided to each participant.  With these exercises, participants are able to gauge their understanding and practice application of analytic concepts.  Through this process, the instructor can assess which participants may require additional attention.  


Completion of a final case study is required.  Each participant will analyze a complex lending scenario and write an analysis using the bank’s credit format or Paragon Hill’s recommended format.  The instructor will review the final case study exercise with a detailed evaluation forwarded to the participants and their supervisors.


After completing this training, participants should be able to:

  • Identify the interrelationships of a borrower’s various financial activities as presented on a personal financial statement and on a personal tax return
  • Evaluate the resources available to service debt from analysis of the individual and business financial statements – calculate global cash flow
  • Evaluate real estate investments, including owner-occupied and commercial real estate investments
  • Describe issues related to lending to partnerships and law firms
  • Evaluate various trusts and identify associated lending risks
  • Identify the primary source of repayment as well as the secondary source of repayment when making loans to high-net worth individuals
  • Identify key credit risks to consider when making a loan to high-net worth individual
  • Underwrite complex personal loans and present in credit recommendation format
Target Audience Entry or junior-level credit analyst involved in private banking.  It is preferred participants have at least three months of on-the-job experience in the sponsoring bank and completed a college level accounting class.  The program is limited to 25 participants.
Duration 14 days; Classes will typically run from 8:30am to 5:00pm, plus after-class assignments.


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Paragon Hill

Paragon Hill. specializes in the development, design and instruction of training programs for lending professionals at domestic and international banks.