5 C’s of Credit: C for Yourself
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 a 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.
Dev has 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 Corps (FSVC).
have relied on the 5 C’s of credit - capacity, conditions,
collateral, capital, and character for many years, but what do these
terms really mean, and how do lenders use them to determine whether a
potential borrower is creditworthy? This simple credit model is simple
to understand and easy to use. Attend the session to C the big picture
for credit analysis and underwriting.
What can be learned from this session?
- The first four C’s - capacity, conditions, collateral, and character- evaluate a borrower’s ability to repay, but character forces the lender to examine closely the borrower’s willingness to repay.
- Learn how to employ the first four C’s to analyze repayment ability
- Learn how to use the fifth C- character - to judge a borrower’s willingness to repay
- Capacity measured by the ability to repay from cash flow
- Conditions evaluated in terms of how borrowing needs change over the business cycle and what makes some industries more vulnerable to downturns than others
- Collateral analysis in terms of relative liquidation values
- Capacity considered in terms of the borrower’s equity cushion and the degree of relative leverage possible
- Character assessed in terms of willingness to repay as evidenced by payment history as well as tips for fraud prevention
Who Should Attend
Credit analysts, loan underwriters, commercial bankers, loan review officers, credit department managers, senior lenders, chief credit officers.