Analyze & Evaluate Credit Risk for Banks

This course is part of Advanced Credit Risk & Banking Analytics Specialization

Instructor: EDUCBA

Access provided by Xavier School of Management, XLRI

3 modules

Gain insight into a topic and learn the fundamentals.

10 reviews

7 hours to complete

Flexible schedule

Learn at your own pace

3 modules

Gain insight into a topic and learn the fundamentals.

10 reviews

7 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Analyze financial statements and evaluate leverage and cash flow metrics.
Apply credit modeling techniques to assess repayment capacity and risk.
Interpret ratios and build forward-looking credit assessments.

Details to know

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Assessments

12 assignments

Taught in English

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This course is part of the Advanced Credit Risk & Banking Analytics Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
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There are 3 modules in this course

Learners will analyze financial statements, evaluate leverage metrics, interpret cash flow dynamics, and assess credit risk using structured credit modeling techniques. By completing this course, participants will develop the ability to measure repayment capacity, calculate key ratios such as Debt/EBITDA and interest coverage, and estimate forward-looking credit performance under stress scenarios.

This course equips learners with practical tools used in banking and financial institutions to assess borrower strength. Unlike generic finance courses, it integrates qualitative assessment, income statement analysis, balance sheet interpretation, and real-world case applications into a structured credit evaluation framework. Learners gain hands-on insight into working capital analysis, earnings quality assessment, and debt sustainability evaluation. By the end of the program, participants will be able to construct a comprehensive credit opinion supported by financial evidence, making this course ideal for aspiring credit analysts, bankers, risk professionals, and finance graduates seeking applied credit modeling expertise.

This module introduces the core principles of credit modeling for banks and financial institutions. It establishes the foundation for assessing borrower risk by combining quantitative financial analysis with qualitative evaluation. Learners explore revenue quality, profitability sustainability, leverage interpretation, and the role of credit ratings. The module also develops the ability to distinguish between accounting earnings and actual cash generation, ensuring a structured approach to credit risk assessment.

What's included

9 videos4 assignments

9 videosTotal 65 minutes

Introduction to Credit Modeling for Banks5 minutes
Working on First Case Study6 minutes
First Case Study Continues6 minutes
Concept of Credit Rating7 minutes
Credit Fundamentals8 minutes
Qualitative Evaluation6 minutes
Profit and Loss Statement11 minutes
Profit and Loss Statement Continues7 minutes
Profit After Tax8 minutes

4 assignmentsTotal 60 minutes

Introduction & First Case Study10 minutes
Credit Rating & Evaluation Framework10 minutes
Profit and Loss Analysis10 minutes
Graded-Foundations of Credit Modeling & Financial Statements30 minutes

This module develops advanced financial statement analysis skills focused on liquidity, solvency, and capital structure. Learners interpret asset quality, liability composition, working capital behavior, and cash flow reliability. Through ratio analysis and financial validation techniques, the module strengthens the ability to assess repayment risk using leverage metrics, coverage ratios, and trend evaluation. Emphasis is placed on linking accounting figures to real liquidity outcomes.

What's included

8 videos4 assignments

8 videosTotal 64 minutes

Liabilities of the Company6 minutes
More on Liabilities7 minutes
Working on Assets11 minutes
PL and BS Check Example9 minutes
Cash Flow Statement10 minutes
Ratio Calculations9 minutes
Ratio Calculations Continues8 minutes
Cash Interest Coverage4 minutes

4 assignmentsTotal 60 minutes

Liabilities & Assets Analysis10 minutes
Financial Statement Validation & Cash Flow10 minutes
Ratio Analysis & Coverage Metrics10 minutes
Graded-Balance Sheet, Cash Flow & Ratio Analysis30 minutes

This module applies credit modeling techniques to real-world case studies and forward-looking credit performance estimation. Learners project future cash flows, evaluate leverage sustainability, conduct stress testing, and analyze repayment sensitivity under adverse scenarios. The focus shifts from historical analysis to predictive credit risk modeling, enabling learners to form structured credit opinions supported by financial evidence.