Bad Loans - Early Warning Signs & Effective Actions - NEW

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28-29 Mar 2019 London

Special Christmas Offer until 20 Dec £1750 + VAT. Regular price £2095 + VAT. 5% discount for 2 & 10% for 3 people.

Register Now

1-2 Jul 2019 London

Christmas Offer as Above

Course Description

The emergence of potential problem loans within a lending portfolio is an inevitable risk associated with the lending activity undertaken by any bank. However, when the credit quality of lending assets deteriorates to the point where they are “Non-Performing”, the consequences for a lender’s capital base and reputation can be severe.

Through the extensive use of practical exercises and case studies, this 2 day workshop conducted by an experienced City practitioner, will introduce delegates to the common causes and impacts of credit deterioration. It will then focus in detail on how to identify and respond to the early warning signs of an emerging problem in relation to an individual credit exposure; providing high level instruction on how to determine whether it may be possible to restructure or rehabilitate the loan to halt the decline that has been identified.  

 

 

What Will You Learn

By the end of this course you will: 

  •  A clear understanding of the negative effects of credit migration from a lender’s perspective
  • An understanding of common causes of business failure and the most appropriate responses
  • The key skills to support effective exposure monitoring and the early identification of credit deterioration 
  • An understanding of the options available to a lender in response to adverse credit migration
  • An understanding of what conditions are required to facilitate the rehabilitation or restructure of a deteriorating lending asset

 

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Book for any 2 programmes at the same time & save £100 + VAT (in total, not per course)

Main Topics Covered During This Training

  • The Impacts of Problem Debt
  • Early Warning Signs of Credit Deterioration
  • Accounting as Problem Indicator
  • Matching Early Action to Early Warnings
  • Management and Other Stakeholders
  • Formulating a resolution strategy 
  • Implementing an Action Plan

Who Should Attend

This workshop is targeted primarily at staff working in the financial services sector, especially: 

 
  • Risk managers and credit analysts
  • Middle and back office personnel involved in portfolio monitoring 
  • Regulators and supervisory professionals
  • Business managers and team leaders 
  • Internal auditors and Loan Quality Assurance staff  
Register Now

28-29 Mar 2019 London

Special Christmas Offer until 20 Dec £1750 + VAT. Regular price £2095 + VAT. 5% discount for 2 & 10% for 3 people.

Register Now

1-2 Jul 2019 London

Christmas Offer as Above

Bad Loans - Early Warning Signs & Effective Actions - A 2 Day Course 

Day 1
 
The Impacts of Problem Debt
 
  • What are the characteristics of a Non Performing Loan 
  • Accounting and Capital Impacts of NPLs for lenders?
  • Reputational and other implications for lenders
  • The decent into distress – The importance of timely action 
  • Effective loan monitoring -the principles of good credit control
 
Early Warning Signs of Credit Deterioration
 
  • Common causes of business failure.
  • The Credit Cycle - Evaluating changes to the business environment.
  • Identifying business operational failings  
  • Changes in Management Behaviour – a clear EWS!
  • Possible Indications of Fraud 
 
Accounting as Problem Indicator
 
  • How to use borrower credit metrics in detecting early warning signs
  • Beware of Off- Balance sheet exposures – what they might hide
  • Liquidity vs. Solvency Risks – causes and effects
  • Hiding negative trends - Creative accounting – what and why?
  • A review of common accounting tricks
 
Matching Early Action to Early Warnings
 
  • The benefits of setting internal triggers to prompt action
  • Proactive monitoring - Assessing the threat from an EWS
  • Quantifying potential losses – the requirements of IFRS 9
  • The insecurity of security – understanding collateral
  • Reviewing the options - exit or restructure?
 
 
Day 2

Management and Other Stakeholders
 
  • Engaging and Assessing Management.  What is their view of the problem, and are they capable of delivering a resolution?
  • Dealing with Equity Sponsors – their likely agenda and attitude to the holders of debt 
  • The potential agendas and concerns of other lenders  
  • Identifying other key commercial stakeholders 
 
Formulating a resolution strategy 
 
  • Establishing control –immediate protective actions
  • Establishing the crisis timeline – how long have we got?
  • The importance of value preservation
  • Information is key – possible sources and uses.
  • Structural considerations – Who is subordinated and who might need to be involved?
  • Establishing the result required – what is the preferred course of action?
 
Implementing an Action Plan
 
  • Consider the delivery options – Insolvency or Consensual solutions?
  • Establishing roles and responsibilities in a restructure
  • Managing conflicts of interest
  • Stakeholder Management – core principles
  • Monitoring the outcome   
 
Putting it all into Practice
 
  • Working through a comprehensive case study 
 
Workshop summary and final questions  
 

Tim has a banking career spanning almost 40 years, during which period he has worked for RBS Group, Santander Group and Moody’s Corporation.

The first 12 years of his career were spent in RBS retail banking where he rose quickly through the ranks to become Operations Manager of a large UK provincial branch.  He subsequently moved into a Senior Credit Risk role, where he was responsible for the establishment and management of a new of a new centralised team that used technology solutions to monitor the bank’s small business customer base across England & Wales; the objective being to identify and initiate remediation strategies for emerging problem loans.

In the early 1990’s Tim moved into Corporate Banking, and initially spent 4 years in a debt restructuring role.  He subsequently moved to the world of Corporate & Structured Finance and spent the following 15 years originating, structuring and managing the credit risk related to complex leveraged transactions.  In that capacity he was involved in negotiating both Senior Debt and Mezzanine lending positions, both as a bi–lateral lender or as part of a syndicate.    

In 2009, Tim returned to Corporate Debt Restructuring, initially as a transaction lead banker, but subsequently as the Global Head of Technical Learning & Development for the Restructuring Division of a major bank with operations in 23 countries worldwide.  

Tim subsequently led a team of Credit Analysts looking at large exposures in the Manufacturing, Mining and Transport sectors on behalf of Santander Global Banking Markets before taking on an interim role as the interim Head of Credit for a fast-growing UK based Challenger Bank, supporting the highly successful IPO of that business. before becoming a full-time financial services trainer and academic lecturer.  In that latter capacity he has undertaken numerous assignments right across the EMEA region and also in Asia. 

Tim is an Associate of the Chartered Institute of Bankers of England & Wales. 

 
Bad Loans - Early Warning Signs & Effective Actions - NEW <p>The emergence of potential problem loans within a lending portfolio is an inevitable risk associated with the lending activity undertaken by any bank. However, when the credit quality of lending assets deteriorates to the point where they are &ldquo;Non-Performing&rdquo;, the consequences for a lender&rsquo;s capital base and reputation can be severe.</p> <p>Through the extensive use of practic ... London