CREDITWORTHINESS ASSESSMENT

The course addresses an area of particular relevance to the Economics and Finance curriculum and aims to provide the knowledge and tools required to understand one of the core activities of commercial banks: the assessment of the creditworthiness of corporate clients. Creditworthiness assessment is a key stage in the process of granting and managing loans to firms.
The module presents the analytical methods adopted by financial intermediaries and examines the main stages and dimensions of the assessment process.
Particular attention is devoted to developments in the regulatory and supervisory framework, EBA guidelines, and the integration of sustainability factors and related risks into credit assessments and lending decisions.

1. Knowledge and understanding
Knowledge and understanding of the stages of the creditworthiness assessment process;
knowledge and understanding of the client-related dimensions that are relevant to the assessment of creditworthiness;
knowledge and understanding of the qualitative analysis of the client;
knowledge and understanding of the historical and forward-looking quantitative analysis of the client;
knowledge and understanding of the client’s credit behaviour analysis and of the functioning of the Central Credit Register;
knowledge and understanding of the different financing instruments available to meet the client’s various financial needs;
knowledge and understanding of the process through which a rating is assigned to the client;
knowledge and understanding of credit management.
2. Applying knowledge and understanding
Ability to identify the different stages of the creditworthiness assessment process;
ability to analyse the client-related dimensions that are relevant to the assessment of creditworthiness;
ability to carry out a qualitative analysis of the client;
ability to conduct both a historical and a forward-looking quantitative analysis of the client;
ability to conduct an analysis of the client’s credit behaviour, also using the information provided by the Central Credit Register;
ability to select the financing instrument that is most consistent with the financial need to be met;
ability to understand the process through which a rating is assigned to a client;
ability to identify the possible credit management alternatives following the granting of credit.
3. Making judgements
Ability to manage a creditworthiness assessment process;
ability to read and interpret the client’s qualitative, quantitative and credit behaviour analyses;
ability to interpret and critically use the information provided by the Central Credit Register;
ability to select the financing instrument that is most appropriate for the client’s financial needs;
ability to assess the client’s overall creditworthiness and the rating assigned to the client;
ability to manage the stages following the granting of credit.

There are no formal prerequisites. Basic knowledge of Corporate Finance is recommended.

The analysis of firms’ creditworthiness will be examined through the following dimensions:

- the client’s qualitative profile, namely the internal and external circumstances that characterise the client;
- the client’s quantitative profile, including the analysis of financial statements, their formal and substantive reclassification, the assessment of the client’s financial reliability, and historical and forward-looking;
- analysis based on ratios and cash flows;
- the analysis of the client’s credit behaviour, namely the qualitative and quantitative examination of the relationship between the bank and the borrowing client over time;
- the financing instrument requested by the client or proposed by the bank, in line with the client’s financial needs;
- the formalisation of the credit facility, including verification of any collateral or guarantees;
- the assignment of an overall creditworthiness assessment;
- the ongoing management of the credit facility.

To be determined.

Additional materials will be provided by the instructor during the course.

Assessment is based on a 60-minute written examination divided into two parts:

- ten multiple-choice questions, worth 2 points each;
- one structured open-ended question, worth up to 10 points.

The questions are designed to assess knowledge of the fundamental concepts, the ability to apply them to practical situations, and the appropriate use of banking and financial terminology.
For the multiple-choice questions, 2 points are awarded for each correct answer, while 0.5 points are deducted for each incorrect answer, 0 for unanswered questions.
Any bonus points will be awarded for group work completed during the course.

The open-ended question will be assessed according to the following criteria: identification of the relevant elements, application of the concepts and tools covered in the course, clarity of argument, and appropriate use of technical terminology.

written

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

Grades will be awarded according to the following criteria:
A. Scores between 18 and 22 will be awarded where the student demonstrates sufficient knowledge of the course contents, a basic ability to apply the concepts covered, and generally appropriate use of technical terminology.
B. Scores between 23 and 26 will be awarded where the student demonstrates a satisfactory level of knowledge, the ability to apply the concepts correctly, and the ability to formulate sufficiently independent assessments.
C. Scores between 27 and 30 will be awarded where the student demonstrates good or excellent knowledge, well-developed application and judgement skills, and accurate use of technical terminology.

Honours — 30 cum laude — will be awarded where the student demonstrates an excellent command of the course contents, full independence of judgement, and particularly accurate and effective argumentation skills.

The course is organised through lectures. The materials discussed in class will be made available to students through the Moodle platform.
During class sessions, students will take part in activities involving the analysis and discussion of case studies, aimed at applying theoretical concepts to real-world situations.
Additional readings and materials will be made available to students through the course Moodle page.

Accessibility, disability and inclusion
Accommodations and support services for students with disabilities or specific learning disorders

Ca’ Foscari complies with Italian legislation — Law No. 17/1999 and Law No. 170/2010 — concerning the support services and accommodations available to students with disabilities or specific learning disorders.
Students with motor, visual, hearing or other disabilities under Law No. 17/1999, or with a specific learning disorder under Law No. 170/2010, who require support — including assistance during classes, technological aids for examinations, individualised examination arrangements, materials in accessible formats, note-taking support, specialist tutoring, interpreting services or other forms of assistance — should contact the Disability and Specific Learning Disorders Office at disabilita@unive.it.

This subject deals with topics related to the macro-area "Climate change and energy" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development