What is Commercial Banking Training?
Commercial banking training is a course that equips learners with essential skills for a career in commercial banking. The course is designed to prepare commercial bankers, credit analysts, and underwriters on how to handle banking products and services by identifying opportunities and managing risks involved in the process.
Learners are equipped with important skills on how to build relationships with commercial clients and engage with them on high-value conversations that are beneficial to both the bank and the client. Commercial banking training may be offered as an online course or a self-paced learning course.
- Commercial banking training equips learners with the knowledge and skills required to be effective commercial bankers.
- Commercial banking includes banking products and services that are designed for institutions, corporations, and governments.
- Some of the courses included in commercial banking training include loan structuring and documentation, evaluating financial statements, and credit risk rating.
Delivery Options for Commercial Banking Training
1. Online course
An online course allows learners to enroll in commercial banking training, without actually going to traditional classrooms. The course is facilitated by an instructor who is available to guide learners through each lesson. The instructor is available to respond to learner’s questions, as well as review assignments and case studies.
Learners are provided with learning materials in Word, Excel, and PPT file formats, which can be downloaded onto the learner’s computer. Some online courses offer email and telephone support, where learners can ask questions and submit feedback to the instructor.
2. Facilitated self-study
The self-study option allows learners to take control of their schedules and study at their most preferred time. Once the learner’s enrolled in the training, the instructor will mail the course syllabus, textbook(s), and assignments.
The learner will obtain access to an instructor or course advisor, and they can ask questions through telephone or email. Exams are administered online or at a physical location determined by the institution or course instructor. Students will receive a certificate of completion at the end of the course.
3. Classroom format
The classroom format is the oldest course delivery option, and it involves attending physical lecture halls once or twice per week. The course is taught by qualified instructors who are experienced in the legal, academia, and banking industry.
The format involves live classroom interactions between the instructor and the learners. There are face-to-face interactions, and questions presented to the instructors are answered immediately.
Courses Covered in the Commercial Banking Training
The following are some of the courses that may be included in commercial lending training:
1. Analyzing financial statements and tax returns
The course covers the analysis of the key financial statements and tax returns of commercial clients. The main financial statements analyzed in the course include the balance sheet, income statement, cash flow statement, cash budgets, pro forma statements, etc.
The course provides learners with the skills required to effectively evaluate a client to determine their ability to pay back borrowed credit. It also teaches learners how to calculate key financial ratios, the considerations that lenders should take into account when calculating ratios, and how to use the ratios to compare a company’s performance with other comparable companies in the industry.
2. Loan structuring and documentation
The loan structuring and documentation course exposes learners to credit assessment, loan structuring, loan covenants, and how they can be used to match the borrower’s needs to the appropriate loan facility. Learners are equipped with important skills on how to structure the commercial loan, identify sources of repayment that are appropriate for the loan, and evaluate the adequacy of the collateral provided by the buyer.
The course describes the loan documentation process and the requirements that borrowers should meet. The learner is also exposed to key loan documents, loan agreements, and covenants that are involved in the loan review process, and the requirements that the borrower is required to meet before the application can proceed to the closing stage. The course also equips learners with essential loan negotiation skills.
3. Determining credit risk rating
The commercial lending training exposes learners to various types of credit risks and how they can categorize the identified borrower’s risks into the appropriate credit risk rating. The course covers the loan review process, elements of credit risk training, end-to-end process of credit risk analysis, and evaluating the creditworthiness of borrowers. It also covers all aspects of financial analysis, including trend analysis and ratio analysis, where the risk of credit loss to the lender is quantified.
4. Managing problem loans
The problem loans course teaches essential skills in identifying and managing problem loans. The course teaches proven techniques of mitigating problem loans on a loan-by-loan basis. It also provides the best approach for managing problem loans within the framework of the lender’s policies and procedures.
Other topics covered in this course include detecting warning signs of problem loans, causes of problem loans, costs associated with deteriorating credit, and solutions to problem loans.
CFI offers the Commercial Banking & Credit Analyst (CBCA)™ certification program for those looking to take their careers to the next level. To keep learning and developing your knowledge base, please explore the additional relevant resources below: