Objectives On completion of this tutorial, you will be able to:

• Identify the different types of credit facility offered by banks to their customers
• Recognize the risks associated with different products offered as part of customer credit facilities

Tutorial Overview The credit risk that a bank incurs is a function not only of the creditworthiness of the customer, but also the size, nature, and structure of the credit facilities provided. This tutorial looks at the main factors to be considered when assessing the risks for a proposed package of credit facilities for a customer. The tutorial also describes much of the terminology associated with credit facilities - such as advised/unadvised, committed/uncommitted, and recourse/nonrecourse - as well as the factors that impact credit risk for different products that form part of credit facilities. Prerequisite Knowledge Credit Risk Customer Management - An Introduction Tutorial Level: Intermediate Tutorial Duration: 50 minutes