How To Evaluate A Borrower’s Financial Condition: Liquidity, Leverage, And Solvency

with
Dev Strischek
Live Session
$149.00
  • September 24, 2021, 12:30 pm   EST
Training Includes:
  • Certificate of Attendance
  • All resources and training materials
  • An on-demand recording will be available after the live presentation.

Financial institution risk expert Dev Strischek will move from the income statement to the balance sheet to show you how to evaluate a borrower’s liquidity, leverage, and solvency. You will learn how to update your vetting practices to account for the unusual history and uncertain future of the pandemic era.

What You'll Learn

  • How should you measure liquidity today? How have ratios changed?
  • What does the proportion of support between owners and creditors reveal?
  • How can you match short-term assets with short-term debt and long-term assets with long-term debt?
  • How can you determine if a borrower can sustain its asset base, pay its obligations, and reward its owners?
  • How does sustainable growth differ from actual growth?
  • What industry ratios allow you to compare a borrower to its peers?
When:
Friday, September 24, 2021; 12:30 PM Eastern
Scheduled for 60 minutes including question and answer period.

Training Overview

Pandemic-era balance sheets are misleading. Learn how to evaluate the true financial condition of borrowers.

Government subsidies and operating oddities caused by COVID-19 have hit the balance sheets of potential borrowers. Relying on outdated expectations can lead you to approve risky loans and ignore viable opportunities to expand your lending portfolio.

You urgently need to update your procedures for evaluating loan applicants’ liquidity, leverage, and solvency. By analyzing and interpreting internal trends, you can compare them to industry averages and evaluate their impact on repayment ability. Focus in this area will allow you to justify lucrative loans and avoid undue risk.

  • How should you measure liquidity today? How have ratios changed?
  • What does the proportion of support between owners and creditors reveal?
  • How can you match short-term assets with short-term debt and long-term assets with long-term debt?
  • How can you determine if a borrower can sustain its asset base, pay its obligations, and reward its owners?
  • How does sustainable growth differ from actual growth?
  • What industry ratios allow you to compare a borrower to its peers?

Who Should Attend?

  • Credit analysts
  • Credit department managers
  • Loan underwriters
  • Commercial bankers
  • Business and commercial lenders
  • Loan reviewers

Expert Presenter

Dev Strischek

  • Principal of Devon Risk Advisory Group, engaging in consulting, speaking and training on a wide range of risk, credit, and lending topics
  • Former SVP and senior credit policy officer at SunTrust Bank, Atlanta
  • Previously chief credit officer for Barnett Bank's Palm Beach market
  • Served as a combat engineer officer in the U.S. Army
  • Instructor in the American Bankers Association’s Stonier Graduate School of Banking, the Southwestern Graduate School of Banking, and the ABA’s Commercial Lending School
  • Writes about credit risk management, financial analysis, and related subjects for professional business journals
  • Serves on the advisory boards of several professional associations
  • Graduate of Ohio State University and the ABA Stonier Graduate School of Banking
  • MBA from the University of Hawaii

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