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Banking Technology and Operations Week 04

Diploma in FI 04 hours
Year 2
Credit Evaluation Process

Team Members
1 2

3 4

5 6

Objectives

 Gain an overview on the corporate lending process

 Understand the credit evaluation framework
 Appreciate internal credit rating to determine client’s credit standing
 Understand the key components of loan management
 Set up of earning warning system to monitor loans

Activities (100m)

Case study 8-5: “The Importance of Due Diligence in Lending” (Page 223)

This case study highlights concerns related to banking processes. Particularly, it illustrates how
badly designed processes or sloppy execution of good processes can lead to operational risk and
losses.

Questions:

1. How can banks make use of technology to ensure that due diligence processes are
followed?

2. Why are coordination and cooperation across banking divisions, such as lending and
payments processing, important for stopping fraud?

3. How might have the geographic distance between the European banks and their
intended Singaporean customer been a factor in the APB case?

4. How could the banks’ transaction processes be enhanced to detect cases like this early
in the fulfillment stage of the transaction lifecycle?

BTO Year 2
Last update: 01-05-2018