| 12/4/2024 12:23:57 AM |
| Changed Course |
| CATALOG INFORMATION
|
| Discipline and Nbr:
BGN 156 | Title:
CREDIT LENDING ANALYSIS |
|
| Full Title:
Credit and Lending Analysis |
| Last Reviewed:5/13/2024 |
| Units | Course Hours per Week | | Nbr of Weeks | Course Hours Total |
| Maximum | 3.00 | Lecture Scheduled | 3.00 | 17.5 max. | Lecture Scheduled | 52.50 |
| Minimum | 3.00 | Lab Scheduled | 0 | 6 min. | Lab Scheduled | 0 |
| | Contact DHR | 0 | | Contact DHR | 0 |
| | Contact Total | 3.00 | | Contact Total | 52.50 |
| |
| | Non-contact DHR | 0 | | Non-contact DHR Total | 0 |
| | Total Out of Class Hours: 105.00 | Total Student Learning Hours: 157.50 | |
Title 5 Category:
AA Degree Applicable
Grading:
Grade Only
Repeatability:
00 - Two Repeats if Grade was D, F, NC, or NP
Also Listed As:
Formerly:
Catalog Description:
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Students will study the fundamentals of principles and practices for credit and loan analysis, risk assessment, financial statement analysis, and cash flow analysis.
Prerequisites/Corequisites:
Recommended Preparation:
Course Completion or Concurrent Enrollment in BAD 1 OR Course Completion or Concurrent Enrollment in BAD 1 OR Course Completion or Concurrent Enrollment in BMG 55Course Completion or Concurrent Enrollment in BMG 55
Limits on Enrollment:
Schedule of Classes Information
Description:
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Students will study the fundamentals of principles and practices for credit and loan analysis, risk assessment, financial statement analysis, and cash flow analysis.
(Grade Only)
Prerequisites:
Recommended:Course Completion or Concurrent Enrollment in BAD 1 OR Course Completion or Concurrent Enrollment in BAD 1 OR Course Completion or Concurrent Enrollment in BMG 55Course Completion or Concurrent Enrollment in BMG 55
Limits on Enrollment:
Transfer Credit:
Repeatability:00 - Two Repeats if Grade was D, F, NC, or NP
ARTICULATION, MAJOR, and CERTIFICATION INFORMATION
| Associate Degree: | Effective: | | Inactive: | |
| Area: | | |
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| CSU GE: | Transfer Area | | Effective: | Inactive: |
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| IGETC: | Transfer Area | | Effective: | Inactive: |
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| CSU Transfer: | | Effective: | | Inactive: | |
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| UC Transfer: | | Effective: | | Inactive: | |
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| C-ID: |
Certificate/Major Applicable:
Certificate Applicable Course
COURSE CONTENT
Student Learning Outcomes:
At the conclusion of this course, the student should be able to:
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1. Explain the principles of credit and loan analysis.
2. Develop proficiency in financial statement analysis and credit risk assessment techniques.
3. Employ decision-making capabilities for lending.
Objectives:
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At the conclusion of this course, the student should be able to:
1. Analyze and interpret financial statements for the purpose of extending credit.
2. Evaluate cash flow to determine ability to repay debt.
3. Appraise a borrower's credit history.
4. Analyze the risk potential of borrowers.
Topics and Scope
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I. Overview of Financial Statements
II. The Goals and Nature of Credit Analysis
III. Capital Structure and Debt Capacity
IV. Fundamentals of Financial Analysis
V. Credit, Risk, Cash Flow, and Capital Structure
VI. Principles of Extending Borrower Credit
A. Consumer credit
B. Corporate credit
C. Financial institution credit
D. Credit history
VII. Cash Flow Analysis and Forecasting
A. Cash flow methods
B. Ratio analysis
C. Debt service ratio
D. Net operating income
VIII. The Process of Credit Analysis - Making Credit Decisions
IX. Sources of Information, Including FICO (Fair Isaac Corporation) Scores, Dun and Bradstreet Reports, MoneyLine Reports, and Tax Returns
Assignments:
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1. Textbook readings
2. Written homework including case studies
3. Quizzes and exams
4. Homework problems including computational problems
Methods of Evaluation/Basis of Grade.
| Writing: Assessment tools that demonstrate writing skill and/or require students to select, organize and explain ideas in writing. | Writing
30 - 40% |
| Written homework, case studies | |
| Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills. | Problem Solving
20 - 30% |
| Homework problems | |
| Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams. | Skill Demonstrations
0 - 0% |
| None | |
| Exams: All forms of formal testing, other than skill performance exams. | Exams
30 - 50% |
| Quizzes and exams | |
| Other: Includes any assessment tools that do not logically fit into the above categories. | Other Category
0 - 0% |
| None | |
Representative Textbooks and Materials:
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Analyzing Financial Statements. 8th ed. American Bankers Institute. American Bankers Association. 2013. (classic).
Fundamentals of Credit and Credit Analysis. Ziegel, Arnold. CreateSpace Independent Publishing Platform. 2015. (classic).
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