- Principles of credit management, Lending policies and best practices
- Credit analysis/Evaluation process
- Introduction to international trade/Working capital finance
- Securities and Bank advances
- Recovery and Remedial management
Principles of credit management
Different types of credit risks:
- Credit Risk (also known as Default Risk) ...
Credit risk is just the risk that the person you have given credit to, i.e. the company or individual, will be unable to pay you interest, or pay back your principal, on its debt obligations.
- Country Risk. ...
When a country cannot keep to its debt obligations and it defaults, all of its stocks, mutual funds, bonds and other financial investment instruments are affected
- Political Risk. ...
It is the risk that a country's government will suddenly change its policies.
- Reinvestment Risk. ...
possibility that an investor will be unable to reinvest cash flows (e.g., coupon payments) at a rate comparable to their current rate of return.
- Interest Rate Risk. ...
A golden rule in debt investing is this: Interest Rates go up, prices of bonds go down. And vice versa.
- Foreign Exchange Risk. ...
Forex risk applies to any financial instruments that are denoted in a currency other than your own
- Inflationary Risk. ...
Is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.
- Market Risk.
This is the risk that the value of your investment will fall due to market risk factors, which include equity risk (risk of stock market prices or volatility changing), interest rate risk (risk of interest rate fluctuations), currency risk (risk of currency fluctuations) and commodity risk (risk of fluctuations in commodity prices).
Laws applicable to credit facilities
Monetary Law Act, No. 58 of 1949 (Incorporating Amendments up to 30th June, 2014)
Banking Act, No. 30 of 1988
Finance Business Act, No. 42 of 2011Finance Leasing Act, No.56 of 2000
Laws applicable to credit facilities
Monetary Law Act, No. 58 of 1949 (Incorporating Amendments up to 30th June, 2014)
Banking Act, No. 30 of 1988
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