Analysing and Managing Risks of Bank Lending

The premise of this book is the need for effective management of credit risk in banking. But its cause derives from recurrent credit-induced financial crises around the world which left bitter lessons of experience. We have seen significant changes in the structure, lending practices, and risk-taking appetite of banks in the aftermath of the 2008 global financial crisis. There have been important changes in the regulatory framework. In the wake of the changes, the banks reorganized, reinvented strategies, strengthened operations, and elevated IT and human resources. The banks have also evolved management outlook that is more business-driven, and geared towards returning optimum value to the shareholders. Unfortunately, the types and value of business risks which the banks continue to take remain a worrisome problem for stakeholders in the industry. Reckless lending and excessive risk-taking characterize credit decisions still. Thus, there is need to energize the credit process, with a view to devising appropriate risk-mitigating measures. The foregoing informed the comprehensive review and updating of the book in this edition. The review and update underscore the fact that the question of credit risk is yet about the hottest issue in banking today. This implies that while a bank cannot do without lending, it must devise effective means to manage credit risk. But individuals and organizations that borrow money from banks should also appreciate the chance they take in doing so. Credit risk management is of immense concern to both parties. "Analysing and managing risks of bank lending" addresses this concern and establishes the need for a fit between borrowing and lending needs. The book - answers critical bank lending and borrowing questions that are of interest to bankers and the public explains how banks should analyse and manage lending risks in highly volatile business environments to mitigate loan losses demonstrates how bank customers (i.e. borrowers) that need credit facilities should apply for loans and what borrowers must do in order to satisfy lending criteria of banks describes and shows what bank customers should know about how banks are likely to appraise, decline, or approve and manage their borrowing requests gives insight into how practical lessons support, complement, or inform theoretical knowledge of bank lending This edition is comprehensively revised, reworked, and transformed - with changed focus, expanded scope and content, and realigned appeal. It covers the curricula for academic and professional bank lending courses. Thus, the book remains a handbook of credit risk management for bankers, a course text for students of banking and finance, and a reference book for the public. A one-page overview introduces the subject of a chapter and leads to the chapter's learning focus and outcomes. The author adopted a simple approach to complex topics, enhanced by succinct summaries and review questions. With clear references, and detailed end notes, the book is devoid of confusing connotations. The book is simple enough to understand and apply in dealing with the problems at issue in bank lending and credit risk management.

About the Author :
Onyiriuba is a leading banker and author on banking. He proffers solutions to problems which constrain operators and stakeholders in the banking industry. Doing so, he brings about positive changes in the work of bankers that affect the ordinary people. Beyond banking, he assists clients to reinvent enterprise, unlock potential, discover possibilities, and find key to success. Onyiriuba started building a voice when, as a budding author, he wrote "Economic policy and economic development in Africa" (2000). He was moved to write the book by a need to transform Africa. His banking series in which he has four bestsellers to his credit builds on this foundation. Soon he became a strong voice of banking in Africa as he published "Analysing and managing risks of bank lending" (2004), "Drive and tasks in bank marketing" (2008), "Dictionary and language of banking" (2010), and "Credit risk: Taming a hotbed of reckless banking" (2013). Onyiriuba is now a well-known and respected voice in banking circles in Nigeria - and, indeed, West Africa. He commits himself to adding value to the body of banking literature and practice, enhancing the services of banks, advancing risk management in banking, and helping institutionalize sound banking culture. His literary piece, "On the road to self-actualization" (2013), underscores his passion about leading a fulfilling life. He makes a case in "Finances and drive to own and run your own business" - his forthcoming book on personal finance - for borrowing money without fear to jumpstart, advance, or consolidate well-thought-out business plans. Onyiriuba started a career in banking in 1991 after a stint as a lecturer in the university. As a banker, he was at various times group head (commercial banking), regional director (Lagos), and divisional director (corporate banking). Presently, he runs a financial consultancy in Lagos, Nigeria - with a commitment to helping clients succeed. He leads a team of enthusiasts for the latest business, finance and banking thinking. The team helps clients build best practice knowledge, institutionalize sound culture, manage risk well, and create value. Born 13 June 1961, Onyiriuba holds undergraduate and postgraduate degrees in business administration and finance.