Writing an Effective Credit Memorandum-It’s not What You Say But How You Say It
Product ID : DEVS-0006
Level : Intermediate
Duration : 60 Minutes
A frequent speaker, instructor, advisor, and writer on credit risk and commercial banking topics and issues, Dev is the principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust's wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking, and private wealth management. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach market. Besides stints at other banks in Florida, Kansas City, and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii.
Dev serves as an
instructor in RMA's Florida Commercial Lending School, the Stonier
Graduate School of Banking, the Southwestern Graduate School of Banking,
the Pacific Coast Banking School, and the American Bankers
Association's (ABA) Commercial Lending. His school, conference, and
workshop audiences have included participants drawn from the ABA, RMA,
OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management
Accountants (IMA) and the AICPA.
written about credit risk management, financial analysis and related
subjects for the ABA's Commercial Insights, the Risk Management
Association's RMA Journal, and other business professional journals. He is the author of Analyzing Construction Contractors and its related RMA
workshop. A past national chair of RMA and former Florida Chapter president, Dev serves as a member of the RMA Journal's advisory board,
and an ex-officio board member of the Florida and Atlanta RMA chapters.
He also serves on the advisory board of the Atlanta Chapter of the
Professional Risk Managers' International Association (PRMIA), and he
has consulted on credit risk issues with banks in Morocco, Egypt, and
Angola through the US State Department's Financial Service Volunteer
Credit memoranda serve as the primary means of communication in the banking domain. It covers three functions: providing details on customer relation status, record actions, and thoughts, and recommend or support action. An effective memorandum is not about what you say, but how you say it, for commanding attention.
Join industry expert Dev Strischek as he helps you develop your skills in writing an effective credit memorandum that places emphasis on the relevant factors without the need to state the obvious. Strengthen your understanding of the credit analysis and clearly describe the financial impact of changes in financial factors, reporting more than just what has changed.
Analyzing a borrower’s ability to repay means incorporating financial analysis and non-financial information into a concise, valid explanation and estimation of a borrower’s creditworthiness in terms of cash flow, collateral, and guarantees.
- Financial performance—income statement analysis: profitability and productivity
- Financial condition—balance sheet analysis: liquidity, leverage, and solvency
- Cash flow and repayment ability
- Outlining the relevant factors which should be included in credit memorandum—repayment ability from cash flow, collateral, and guarantees
- Writing an effective credit memorandum
- Apply the concepts to a case study
Who Should Attend
- Commercial Loan Officers
- Consumer Loan Officers
- Credit Analysts
- Loan Review Personnel
- Compliance Officers
- Internal Auditors
- Branch Managers
- The participant should have some experience or prior classwork in analyzing financial statements and/or credit analysis
- Human Resource Directors
- Credit Risk Managers
- Real Estate Managers
- Risk Management Officers
- Administrative Assistants
- SVP Regional Loan Officers
- SVP Retail Credit Managers
- Lending Analytics Managers
- Bank Officers
Why Should You Attend
What you need to analyze is a borrower’s ability to repay based on the borrower’s financial and non-financial track record. What you need to explain concisely and factually is how you have evaluated the borrower’s creditworthiness. This session will provide you guidance and tips on how to accomplish this task.