This eCourse consists of two modules. Module 1 is the first in a series that looks at the issue of customer management from a credit risk point of view. The focus here is on customer positioning and aggregation. In recent times, there have been substantial changes in banking services and how customers do business with their bank(s). With competition in the industry escalating ?including an increased threat from nonbank entities ?banks have had to reconsider their positioning strategies in an attempt to increase their market share, improve their profitability, and so on. This module describes some of the key issues related to customer positioning from a bank point of view. The module also looks at the importance of correct aggregation of credit facilities and/or utilizations for customers and customer groups, as well as some of the difficulties and challenges that banks face in that regard.
Module 2 looks at the main factors to be considered when assessing the risks for a proposed package of credit facilities for a customer. The module also describes much of the terminology associated with credit facilities ?such as advised/unadvised, committed/uncommitted, and recourse/nonrecourse ?as well as the factors that impact credit risk for different products that form part of credit facilities.
On completion of this course, you will be able to:
- Recognize how the preferred customer position can vary from bank to bank
- Aggregate the credit facilities and utilizations for customers and customer groups, and determine the need for such aggregation
- Identify the different types of credit facility offered by banks to their customers
- Recognize the risks associated with different products offered as part of customer credit facilities
Module 1: Credit Risk Customer Management - An Introduction
Topic 1: Customer Positioning
Topic 2: Aggregation
Module 2: Credit Risk Customer Management - Credit Facilities
Topic 1: Overview of Credit Facilities
Topic 2: Impact of Products on Credit Risk
Staff of Corporate Member: HKD460