BUSN3070 Credit Analysis and Lending Management

This topic provides an introduction of the various lending activities of Australian financial institutions and the risks related to these activities. It includes credit risk assessment, credit risk management, and the management of lending activities. Methodologies related to structuring a loan, traditional techniques for credit analysis, distressed firm prediction and reviewing of the newer models of assessing credit risk will be discussed. Retail lending, commercial lending, corporate lending and corporate services and valuation of assets will be explored.

• Students will develop an understanding of credit risk analysis and management
• Students will develop an understanding of loan types, structures and lending practices
• Through problem solving activities students will develop critical analysis and skills and ability to clearly communicate outcomes of analysis

1. Examine the major types of lending products from basic economic principles
2. Analyse the risk return characteristics and pricing of a loan application
3. Discuss the behavioural aspects associated with lending decisions
4. Apply statistical techniques used in decision making at the approval, monitoring and termination stages of lending