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Overview

This programme is designed to strengthen staff competency in credit assessment, with a particular focus on evaluating the financial health of companies where the applicant is self-employed, such as a company director and/or shareholder.
A deeper and more structured understanding of audited financial statements enhances the quality of credit decisions, improves the identification and assessment of financial and business risks, and promotes greater consistency and discipline in credit evaluation across the organisation.
Programme Outline
Learning Objectives
The programme will equip credit risk analysts with the knowledge of credit evaluation to enable them to perform their work. At the end of the session, participants will be able to:

  • Understand the components of the financial statements and their assessment of credit risk
  • Interpretation of financial ratios and its connection to the business
  • Identify early warning signals & financial red flags

Programme Outline
  • Module 1: Networking Capital Computation
    • Net working capital computation—too much, too little, or just nice
    • Importance of net working capital

  • Module 2: Components of the Financial Statements – Assessment to credit risk
    • Significance of the auditors’ opinion
    • Statement of Financial Position (aka Balance Sheet)
    • Statement of Comprehensive Income (aka Profit and Loss)
    • Statement of Cashflow
    • Notes to accounts – why is it important

  • Module 3
    • Recap of key financial ratios—connecting the dots to the business

  • Module 4: Creative accounting and Early Warning Signs
    • Methods used
    • Early warning signs – internal and external

METHODOLOGY
Powerpoint, videos, interactive, presentations/discussion, case-studies
Participant profile
Credit Risk Personnel
Trainer
Dr. Lim Guan Chye
Director of Commercial Banking Training, Asian Banking School
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Dr. Lim Guan Chye
Director of Commercial Banking Training, Asian Banking School
Dr Lim Guan Chye (Dr GC) is the Director of Commercial Banking Training at the Asian Banking School. He has 25 years of experience as a banker with several local and foreign banks in the capacity as Regional Manager and Branch Manager; and is well-versed with credit evaluation/assessment, banking operations, branch management and the legal aspects of banking.

Dr GC also has worked for 10 years in group companies including a public listed company in various senior management capacities such as Finance Director and Group General Manager. He is a life-long learner and is passionate about sharing his experiences in banking and business. He recently published his 2nd book entitled “The Quick Guide Series – About Business & Banking” in January 2021.

He is a Certified Credit Professional awarded by IBBM (now known as the Asian Institute of Chartered Bankers) and a certified trainer awarded by the Finance Accreditation Agency and HRDF (now known as HRD Corp).

Dr GC holds a 2nd Upper Honours Degree in Economics from the University of Malaya and a DBA from the EU Business School, Geneva in 2019.

In June 2023, Dr GC obtained his Chartered Banker MBA (CBMBA) – Pass with Merit from Bangor University, Wales. Apart from MBA, this achievement also bears membership status with Chartered Banker Institute, UK

His latest book entitled “Beyond The Numbers: Behavioural Insights in Credit Risks” is expected to be published in March 2026.
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Asian Banking School
Financial Statements Mastery – Connecting the dots
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