COMMERCIAL BANKS’ MANAGEMENT AND CREDIT ANALYSIS - 1

The course is a core one for the degree program in Economics and Finance. The aim of the first module of the course is to provide the knowledge for understanding the core business of commercial banks, i.e. the creditworthiness evaluation of clients, in particular of corporates. This dimension assumes a determinant role in the corporate funding process of banks. The course will show the evaluation procedures followed by the financial intermediaries, retracing and analysing the different dimensions of the creditworthiness evaluation process, also in the light of the recent Banking Union provisions.

1. Knowledge and understanding:
1) knowledge and understanding of the phases of the creditworthiness evaluation process;
2) knowledge and understanding of the client features relevant for the evaluation of his/her creditworthiness;
3) knowledge and understanding of the qualitative analysis of the client;
4) knowledge and understanding of the quantitative, both historical and forward looking, analysis of the client;
5) knowledge and understanding of the operating score of the client and the functioning of the Central Credit Register;
6) knowledge and understanding of the different funding alternatives more consistent with the financial requirement to be covered;
7) knowledge and understanding of the attribution of the rating to the client;
8) knowledge and understanding of the credit management.

2. Ability to apply knowledge and understanding:
1) ability to identify the different phases of the creditworthiness evaluation process;
2) ability to analyse the client features relevant for the evaluation of his/her creditworthiness;
3) ability to develop the qualitative analysis of the client;
4) ability to perform the quantitative analysis of the client, both historical and forward looking;
5) ability to make the operating score of the client, also using the information provided by the Central Credit Register;
6) ability to understand the bank funding more consistent with the financial requirement to be covered;
7) ability to understand the attribution of a rating to a client;
8) ability to identify the possible alternatives of the credit management, after the concession.

3. Making Judgements:
1) to know how to manage the creditworthiness evaluation process;
2) to know how to read and interpret the client’s qualitative, quantitative and trend analyses;
3) to know how to interpret and use critically the information provided by the Central Credit Register;
4) to know how to assess the client’s creditworthiness and the attributed rating;
5) to know how to select the appropriate funding in relation to the financial requirement of the client;
6) to know how to manage the steps after the credit concession.

No requirements. Knowledge of basics of Corporate Finance is recommended.

The analysis of the corporate creditworthiness, developed in accordance with the following dimensions:
- The qualitative image of the client, i.e. internal and external circumstances featuring the client;
- The quantitative image of the client, that is the financial statement analysis, to check the client reliability, historical and prospective analysis (for indexes and flows);
- The operating score analysis of the client, i.e. the quali/quantitative examination of the bank-client relationship over time;
- The technical form of funding required by the client, or suggested by the bank in line with the client's needs;
- The lending process, checking the presence of any guarantees;
- The final credit quality judgment.

Naccarato F., 2017, Tecnica del finanziamento d'impresa, Giappichelli.
Teaching materials provided during the course.

The assessment follows two alternative modes depending on the student participation in the Experior project *.

CONVENTIONAL MODE:
For students who do not participate in the Experior project, the exam will be written and structured on two parts: a first one composed by two open questions and a second one based on five multiple-choice questions. Questions, referring to both the course modules, will ascertain the knowledge of the basic concepts presented in the course and the critical understanding of such concepts. Each open question will be evaluated from 0 to 10 while each multiple choice will receive a +2 score if the answer is correct, 0 otherwise.
The grade is based on both the written exam and the participation to all the learning activities offered during the course (case study analysis and discussion).

METHOD 'WITH PARTICIPATION IN THE EXPERIOR PROJECT:
For students participating in the Experior project, the written examination consists of a set of simple basic questions, aimed at the assessment of the fundamental notions faced during the course. The grade will take account of both the written exam and the teamwork produced at the end of the project.


* The participation in the Experior project is optional and requires to carry out of a team work, structured and thorough. Students will come into direct contact with a bank and followed by a mentor, will have direct access to the necessary information for pursuing the different steps of the project. Each team will prepare a report. This report, together with the mentor assessment about the team commitment and ability of analysis and evaluation of problems, will contribute to the final evaluation examination.

The 12 CFU exam lasts 60 minutes, regardless the delivery method.

The course will be based on classroom teaching. The material used during classes will be made available to students through the moodle platform (www.unive.it/moodle).
During classroom hours there will be activities of case studies analysis and discussion, used to apply theoretical concepts to empirical cases.
Additional readings and materials will be available to students on the course moodle page.

Italian

Accessibility, Disability and Inclusion
Accommodation and support services for students with disabilities and students with specific learning impairments

Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support services and accommodation available to students with disabilities. This includes students with mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: disabilita@unive.it.


During Covid 19 emergency periods the delivery methods of both teaching and exams may be changed to guarantee students.

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This subject deals with topics related to the macro-area "Human capital, health, education" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development