module specification

The module enables the appreciation of the contexts in which lending can be seen to be operating. It provides the theoretical and practical framework for analysing and evaluating the principles and practices of lending. It focuses on credit granting, credit evaluation, credit monitoring and ensuring adequate controls over credit risk. It also introduces use of software that may include software/databases such as Excel and Bloomberg to evaluate borrower creditworthiness.

The module aims for the following:
1. You will understand the context in which lending operates.
2. You will be able to evaluate borrower creditworthiness
3. You will understand the processes of credit granting, credit monitoring, credit risk management and credit control in relation to the personal, SME and large corporate sectors.
4. You will develop an understanding of the legal and regulatory environment within which lending takes place

Lending and the evaluation of borrower creditworthiness (LO2)
Principles and processes of credit risk management (LO3)
The credit granting process: credit analysis and evaluation (LO3)
Credit scoring; credit rating agencies (LO1)
Types of bank finance and securities – (LO1)
Monitoring, control and follow-up (LO3)
Ethical issues in bank lending (LO1)
The legal and regulatory environment within which lending takes place – (LO4)

Scheduled learning and teaching for this module comprise face-to-face contact hours consisting of weekly 2-hour lectures and 1-hour seminar. The virtual learning environment (Weblearn) supports the relevant module learning and teaching materials such as lecture slides, seminar questions, case studies, guideline answers to case studies / seminar questions, past examination paper, assessment and grading criteria, deadlines and feedback details.  Computer labs such as the Bloomberg lab may be used for specified seminar sessions to promote interactive learning.

Students are encouraged to reflect on their learning development through seminar participation, feed-forward and feedback sessions.

On successful completion of the module students will be able to:
1. Understand the context in which lending operates (LO1)
2. Evaluate borrower creditworthiness (LO2)
3. Demonstrate a critical appreciation of the processes of credit granting, credit monitoring, credit risk management and credit control in relation to the personal, SME and large corporate sectors. (LO3)
4. Demonstrate a critical awareness of the legal and regulatory environment within which lending takes place (LO4)

Core Texts
Lee, N. and Lee, V.J. (2018) Bank Lending: Principles and Practice, Gosbrook Professional Publishing, Reading
Roberts, G. and Keller, A. (2015) ‘Law Relating to Financial Services’ Global Professional Publishing, Cranbrook, Kent

Other Texts
Buckley, A. (2011) ‘Financial Crisis: Causes, Context and Consequences’ Pearson Education, Harlowe
Davies, H. and Green, D. (2013) ‘Global Financial Regulation: The Essential Guide’ John Wiley and Sons
De Freitas, J. D. (2011) “Business Law” 8 Ed (Castlevale), Wiley & Son (Law Booksellers), Lincoln’s Inn Archway Carey Street, London
Financial Conduct Authority (2020) COVID-19 Credit Cards and Personal Loans Instrument 2020/16
Financial Conduct Authority (2017) ‘Consumer Credit sourcebook’ in Chapter 5 Responsible Lending Release 18 Jul 2017 www.handbook.fca.org.uk
Lee, N. (2008) ‘Principles of Lending’, published by the ifs (institute of financial services) School of Finance, incorporated by Royal Charter, Canterbury, and by Global Professional Publishing, London
Onyiriuba, L. and Ikpefan, O. A. (2018) ‘Principles and practice of bank lending’ NFS Data Bureau Ltd Lagos, Nigeria, and the USA
Rouse, N. and Watson, C. (2017) ‘Applied Lending Techniques', Global Professional Publishing, Cranbrook, Kent
Saunders, A & Allen, L (2010) ‘Credit Risk Management: In and Out of the Financial Crisis’, 3rd Ed., John Wiley & Sons Inc. New Jersey
Policy Paper:
Bank for International Settlements (2000) Principles for the Management of Credit Risk, Basel Committee on Banking Supervision, Basel http://www.bis.org/publ/bcbs75.htm