COMMERCIAL BANKS’ MANAGEMENT AND CREDIT ANALYSIS - 2

The course is a central teaching component in the Economics and Finance program. The objective of the second module is to provide knowledge for understanding the core business of commercial banks, specifically the process of evaluating the creditworthiness of their clients, particularly corporates. This dimension today plays a predominant role in granting loans to businesses. The course will illustrate the analysis methods adopted by financial intermediaries by retracing and reconstructing the various dimensions of the creditworthiness evaluation process, also considering the provisions introduced by the Supervisory Authority and the EBA. Therefore, it will also take into account sustainability issues within creditworthiness assessments.

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 of learning is based on a written exam, structured in two parts: the first part consists of two open-ended questions, and the second part is composed of five multiple-choice questions.

The questions, covering the syllabus of both modules of the course, aim to verify the knowledge of the basic concepts presented during the course and the critical understanding of these concepts. Each open-ended question is graded from 0 to 10 points, while each multiple-choice question is graded 2 points if correct, 0 otherwise. The grade is based on the evaluation of the written exam and the student's possible participation in the optional educational activities proposed during the course (case studies). In particular, an additional score will be awarded to students who participate in all the educational activities proposed during the course. In this case, an additional score, up to a maximum of +2 points, will be added to the grade obtained through the written exam.

Regarding the grading scale (how the grades will be assigned):
A. Scores in the range of 18-22 will be assigned in the presence of:

Sufficient knowledge and applied understanding in reference to the course syllabus;
Limited ability to apply knowledge and formulate independent judgments;
Sufficient communication skills, especially in relation to the use of specific language pertinent to the banking sector;
B. Scores in the range of 23-26 will be assigned in the presence of:
Fair knowledge and applied understanding in reference to the course syllabus;
Fair ability to apply knowledge and formulate independent judgments;
Fair communication skills, especially in relation to the use of specific language pertinent to the banking sector;
C. Scores in the range of 27-30 will be assigned in the presence of:
Good or excellent knowledge and applied understanding in reference to the course syllabus;
Good or excellent ability to apply knowledge and formulate independent judgments;
Fully appropriate communication skills, especially in relation to the use of specific language pertinent to the banking sector;
D. Honors will be awarded in the presence of excellent knowledge and applied understanding of the syllabus, judgment skills, and communication skills.



The exam has a total duration of 60 minutes.

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.

written

This subject deals with topics related to the macro-area "Climate change and energy" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development