Commercial Lending Academy

Every year, the Risk Management Association Minnesota Chapter offers the Commercial Lending Academy as a unique, two-week intensive training course for bankers. Since the program’s inception, over 438 lenders, credit analysts and financial industry professionals from more than 95 institutions in the Midwest have graduated from the Academy. The Commercial Lending Academy provides a comprehensive overview to the various aspects of the commercial loan underwriting and management process.

What You’ll Learn

By attending the Commercial Lending Academy participants will more holistic approach to how cash flow analysis can help in other items such as loan structuring, understanding trends of commercial borrowers, understanding and identifying risk factors of commercial borrowers, and how to reduce the risk in the lender’s loan portfolio.

Financial Statement Analysis/Accounting

All lenders and credit analysts must be aware of basic financial statement analysis techniques and issues in order to properly assess business borrowers. Bankers receive an introduction to ratio analysis and common size analysis. As such after completing the course, participants are expected to have a basic understanding of:

  • Common accounting issues as they affect traditional ratio analysis.
  • The requirements for and differences between accounting compilations, reviews, and audits.
  • The distinctions between and uses of internal and external ratio analysis.
  • The requirements for, formulas for, interpretations of, and limitations of traditional financial ratios.
  • The elements of a basic traditional ratio analysis.

The intent of this section is to make bankers more effective in both their use and understanding of accounting reports, ratio analysis, and common size analysis.

Cash Flow Analysis for Bankers

All business bankers must be able to assess the cash flow generation abilities of their borrowers because their cash flow repays their debt. You will learn:

  • The importance of cash flow to commercial lending
  • Traditional cash flow limitations and adjustments when analyzing borrowers
  • The logic and mechanics of borrower cash flow
  • Key cash flow statement questions that should always be asked for any cash flow statement
  • A discussion of UCA® cash flow terms and their meanings
  • A review of the logic behind the UCA® cash flow statement format
  • Borrower cash flow analysis options using software
  • What the term “cash flow” really means as it relates to borrowers
  • What the recipients of UCA® format cash flow statements are required to do in order to perform both basic and more-advanced cash flow analyses on them.
  • What the advantages and limitations are of the UCA® format cash flow statement.
  • What the standard vocabulary of the UCA® format cash flow statement really means.

Other Training

  • Qualitative Analysis
  • Identifying and Managing Problem Loans
  • Commercial Loan Structure
  • OCC Regulatory Panel

The Commercial Lending Academy is generally held in the spring. Get more information on our upcoming education classes for bankers in Minnesota.

Past Commercial Lending Academy Participants

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