Module ABJ-4447:
Credit & Lending
Credit and Lending 2026-27
ABJ-4447
2026-27
Bangor Business School
15 credits
Module Organiser:
Ian Roberts
Overview
The lecture programme will examine and critically discuss the principal areas and questions raised in credit and lending activities. The lectures will introduce the interpretations of the banker customer relationship, principles of lending and different forms of lending services. This evaluation will be complimented by discussion of issues pertinent to business lending and the use and application of securities as collateral. This discussion is developed through an assessment of problems, challenges and new practices faced by the modern professional banker including bankruptcy, credit scoring and credit risk management for businesses and banks alike.
Assessment Strategy
Threshold - 50% - C Satisfactory standard: No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.
Good - 60% -B Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.
High Standard: 70% -A Very good performance. Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work’s objectives. Evidence of the use of creative and reflective skills.
Excellent - Excellent standard: An outstanding performance, exceptionally able. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.
Learning Outcomes
- Demonstrate an extensive, detailed and critical knowledge and understanding of how credit risk functions, and how it plays its part in managing risk for a banking business.
- Demonstrate an extensive, detailed and critical knowledge and understanding of the legal aspects of the banker-customer relationship.
- Demonstrate awareness of a range of business banking lending skills, techniques and practices.
- Demonstrate detailed knowledge and understanding of diligence and bankruptcy.
- Demonstrate detailed knowledge and understanding of the procedures for taking the range of securities for advances.
- Describe in detail the principles of lending and the main lending and credit products.
- Interpret and assess business accounts, including identifying, formulating and solving business problems and assessing and managing risk in a business banking context.
Assessment method
Exam (Centrally Scheduled)
Assessment type
Summative
Description
The examination requires students to evaluate a series of credit and lending scenarios and reach a justified credit decision. Students are expected to undertake structured credit analysis, incorporating both financial and non-financial information. This includes analysis of financial statements (profit and loss accounts, balance sheets, and cash flow forecasts), assessment of repayment capacity, and calculation of key risk metrics such as probability of default. Students must demonstrate the ability to interpret borrower risk, identify warning signs, and apply appropriate risk management techniques within a portfolio and regulatory context. The assessment emphasises critical thinking and professional judgement. Students are expected to make sense of incomplete or imperfect information, weigh competing risks, consider alternative interpretations, and justify their recommendations clearly and coherently. Marks are awarded for analytical rigour, depth of evaluation, and the integration of quantitative analysis with qualitative credit assessment in reaching a defensible credit decision.
Weighting
75%
Assessment method
Coursework
Assessment type
Summative
Description
Professional Standards for Banking & Finance This is a structured, computer-based assessment comprising six short ethical scenarios. Each scenario includes short readings and video material designed to develop applied understanding of professional standards in banking and finance. Students complete a short multiple-choice test at the end of each scenario to demonstrate comprehension and application of key ethical principles. The assessment supports the development of professional judgement and ethical awareness aligned to industry standards. Successful completion leads to a professional certificate, which students may share on professional networking platforms as evidence of engagement with recognised industry ethics training. The assessment includes an element of reflective writing supporting student learning of the material.
Weighting
25%
Due date
28-11-2022
Assessment method
Class Test
Assessment type
Formative
Description
Formative class tests are designed to prepare students for the final examination through structured practice using past examination papers completed under timed classroom conditions. Students will analyse credit and lending scenarios, interpret financial and non-financial information, and practise key techniques such as financial statement analysis, cash flow assessment, probability of default calculations, and risk evaluation. The focus is on developing structured analytical approaches and applying appropriate risk management frameworks. These tests emphasise critical thinking and sense-making under time constraints. Students are expected to interpret data carefully, prioritise relevant information, construct coherent arguments, and justify credit decisions clearly. Feedback will focus on analytical depth, clarity of reasoning, technical accuracy, and the quality of judgement demonstrated, enabling students to refine their exam technique and decision-making approach.
Weighting
0%