DABF / HDBF – Credit Management

The DABF – Credit Management course is an in-depth exploration of the principles, processes, and strategies involved in managing credit within financial institutions. This course is specifically designed for banking and finance professionals who aim to build expertise in assessing, managing, and mitigating credit risks. It covers the key elements of credit management, from evaluating the creditworthiness of potential borrowers to handling non-performing loans (NPLs) and collections. Students will develop the skills necessary to navigate the complex landscape of credit management while ensuring profitability, risk control, and compliance with regulatory standards.

Credit management is a crucial aspect of the banking industry, as it directly impacts an institution’s profitability, risk exposure, and financial stability. This course delves into the various stages of the credit cycle, including loan origination, approval, risk assessment, monitoring, and recovery. Through a combination of theoretical learning and practical case studies, students will gain the ability to effectively analyze credit applications, assess risk, and make informed decisions regarding credit extension.

One of the key aspects of this course is the focus on credit risk assessment techniques. Students will learn how to evaluate the creditworthiness of individuals and businesses using financial ratios, credit scores, and other relevant data. Emphasis is placed on understanding the various types of credit risk, such as default risk, market risk, and liquidity risk, and the strategies employed to mitigate these risks, including collateral management, insurance, and the use of credit derivatives.

The course also addresses the critical topic of non-performing loans (NPLs) – loans that are in default or close to being defaulted. Students will explore the causes of NPLs, strategies for minimizing defaults, and best practices for managing distressed loans. This includes learning about collection techniques, restructuring options, and the role of legal frameworks in recovering bad debts.

Additionally, students will gain a deep understanding of the legal and regulatory aspects of credit management, including compliance with international banking standards such as Basel III, local financial regulations, and ethical lending practices. By understanding these legal frameworks, students will be equipped to navigate the regulatory environment and make ethical, sound lending decisions.