Basel II, a global banking regulation implemented in 2006, requires banks to strengthen their credit risk management and link their capital charge with internal risk measures. This motivates banks to spend additional resources on enhancing risk management systems and hiring specialists to manage risks. This course aims to introduce the credit risk concepts and the credit evaluation and management process both at the individual loan and the portfolio level. A wide range of methodologies that enable banks to manage their credit risk will be discussed.
Pre-requisite: IBF502 Corporate Finance or IBF603 Multinational Financial Management; and IBF505 Investment Theory and Applications or equivalent