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What is the best Method for preparing Credit Analysis ?

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Question added by Mahmoud Fawzy Zaky , Manager - Head of FX & Cash Desk , Faisal Islamic Bank of Egypt
Date Posted: 2013/09/21
Tanveer Qureshi
by Tanveer Qureshi , Director , Qureshi Associates

The formal credit analysis procedure include an evaluation of borrower’s request and a detailed review of all financial statements. The process of credit analysis consist of:

 

1. Collecting information for credit files, such as credit history and performance.

2. Evaluating the management, the company and industry in which it operates i.e. evaluation of internal         and external factors.

3. Financial statement analysis.

4. Propjecting borrower's cashflow and their ability to service the debts.

5. Writing a summary of analysis and recommendation. 

Amjad Ali
by Amjad Ali , Regional Manager , NATIONAL BANK OF PAKISTAN

You need to know and understand the customer, loan purpose , credit worthiness, line of business, market standing , reputation etc

 

Analyse financial statements of the client and make a ratio analysis sheet.

 

Analyse security offered against the requested loan.

Ahmed AL-Marzoog
by Ahmed AL-Marzoog , Internal Auditor , Ministry of municipal and rural affairs and housing

The5C's of credit model>

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