Year of Study:	3-4
Credit Units:	3
Duration:	45hours
Prerequisites:	ACC2002 Principles of Accounting 2, ACY2002 Managerial Accounting 1,or with the Instructor’s permission and upon endorsement of the relevant Head and Programme Director

Individuals and business firms require credit for business activities. This module aims to give students a practical understanding of how credit and lending decisions are made for business activities. Study will concentrate on establishment and development of the principles of different lending principles and different ways to broaden the consideration of risk analysis and reporting. This module finishes with the application of these principles to a series of practical lending situations and products. Relevant issues in credit policies, legal aspects and credit risk mitigants will also be considered.

Upon completion of this module, students should be able to:

1. outline the basic aspects of lending and the principles of good lending;


2. demonstrate the capacity to undertake and discuss financial statement analysis;


3. explain the rationale for credit scoring models and discuss their development and application;


4. define and discuss credit risk and explain its measurement and control in relation to individuals, business and portfolios; discuss the various issues/ loan types/ techniques/ statistics pertaining to consumer, real estate, corporate, small business and international lending;


5. describe the legal framework that governs consumer and real estate lending, and outline legal factors that are specific to bankers;


6. provide an overview of problem loan management: causal factors, remedial actions, statistics etc; and


7. discuss credit risk mitigants issues in relation to financial services.