Level 4: Qualitative Analysis and Determining a Credit Risk Rating


Description: Level 4: Qualitative Analysis and Determining a Credit Risk Rating covers qualitative analysis and how to assess industry risk, market risk and management risk. It also provides an understanding of the role of loan policy and the need to summarize the borrower’s various risks into an appropriate credit risk rating.

Audience: Commercial and/or Business bankers and Credit Analysts

The courses included in the Level 4: Qualitative Analysis and Determining a Credit Risk Rating and their objectives are listed below:

The Commercial Lending Process and Initial Business Development Calls

  • Explain why the commercial lending process is necessary
  • Recognize the process and types of information business bankers should acquire during a business development call

Credit Investigation and Assessing Industry, Market and Management Risk

  • Explain the importance of a credit investigation and describe what it entails
  • Identify industry, market, and management risks that can affect a borrower

Loan Policies and Procedure, Including Credit Risk Ratings

  • Describe how a bank’s organizational structure affects the lending function
  • Identify the key elements of a credit risk rating
  • Describe the loan review process as an independent validation of risk ratings and other commercial lending issues

Loan Packages and Credit Write-Ups

  • Identify typical components of a commercial loan package and memorandum
  • Describe the simpler format, timing, and administration of annual reviews for commercial loans

Course Credits:


Member: $150
Non-Member: $200

ABA Library:
Commercial Lending