Bank Lending
| Module title | Bank Lending |
|---|---|
| Module code | BEF3022DA |
| Academic year | 2025/6 |
| Credits | 30 |
| Module staff |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 12 |
| Number students taking module (anticipated) | 70 |
|---|
Module description
This module provides an in-depth understanding of the principles, practices, and risks associated with bank lending. It explores the various types of credit facilities offered by banks, including retail, commercial, and syndicated loans, and the processes involved in assessing, approving, and managing credit. Students will examine the regulatory environment, credit risk analysis, loan structuring, and the importance of due diligence and monitoring. Emphasis is placed on practical application through case studies, financial analysis, and exposure to real-world lending scenarios. The module also highlights the ethical, legal, and professional responsibilities of lenders in maintaining credit quality and supporting economic stability.
Module aims - intentions of the module
This module aims to equip students with the knowledge, skills, and professional judgement required to assess, structure, and manage lending activities responsibly within a regulated banking environment. The module aims to develop competence in credit risk analysis, loan decision-making, and the ethical conduct of lending in line with principles of professionalism, integrity, and customer-focused service.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Explain the fundamental principles and objectives of lending from a banking perspective.
- 2. Apply credit assessment techniques to analyse the financial and non-financial position of borrowers using appropriate tools and frameworks.
- 3. Interpret financial statements and other documentation to assess an applicants creditworthiness.
- 4. Evaluate qualitative factors, such as business strategy, market position, and management capability, in lending decisions
- 5. Identify the main types of lending products offered by banks (e.g., term loans, overdrafts, asset finance).
- 6. Match appropriate loan structures to borrower needs, ensuring alignment with risk appetite and regulatory compliance.
- 7. Monitor and manage loan performance over time, including early identification of credit deterioration and restructuring options.
- 8. Interpret relevant laws, regulations, and ethical guidelines that govern lending practices
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 9. Explain the role and importance of lending in banking, economic development, and customer relationship management.
- 10. Demonstrate sound professional judgement in loan decision-making, ensuring suitability, affordability, and alignment with risk appetite and regulatory standards.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 11. Accurately review financial documents, credit applications, and compliance checks
- 12. Demonstrate empathy, responsiveness, and professionalism in client interactions.
- 13. Uphold high standards of conduct in lending decisions.
Syllabus plan
Indicative topics:
- Types of bank lending and the importance of lending to banks' business models
- Types of borrowers and loans, loan proposals and business plans
- Financial statement analysis: Income statement, balance sheet, and cash flow statement.
- Ratios and metrics: Debt-to-equity, current ratio, profitability analysis, etc
- Loan types: term loans, revolving credit, overdrafts, lines of credit, and asset-based lending.
- Sources of non-financial information used to assess business capability
- key components and structure of a sound lending assessment
- The importance of ethical lending practices and the role of codes of conduct
- Regulatory bodies and their role in ensuring the stability and fairness of the lending process
- The importance of integrating ESG factors into lending decisions
- The rise of digital lending platforms in credit assessment and lending
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 30 | 270 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled teaching and learning activity | 30 | Masterclasses (in-person and online) |
| Guided independent study | 270 | Research, reading contents on ELE, assessment preparation and web-based activities including external resources if applicable. |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Weekly applied exercises | 10-20 minutes | 1-13 | Online answer feedback |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 80 | 20 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Weekly online quiz | 20 | Weekly online MCQ quiz for five weeks | 1-13 | Marks and correct answer explained. |
| Coursework assignment | 80 | 3500-word report | 1-13 | Marks and individual feedback (written). |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| MCQ exam | 20%, 50 questions | 1-13 | In line with university regulations |
| Coursework assignment | 80%, 3500-word written assignment | 1-13 | In line with university regulations |
Re-assessment notes
Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.
?
Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 40%
Indicative learning resources - Basic reading
Recommended Text:
- Cudby, A. (2018). Commercial Lending: Principles and Practice (Vol. 2). Kogan Page Publishers.
- Benton, E., & Kolari, J. (2005). Commercial Banking: The Management of Risk. John Wiley & Sons.
- Colquitt, J. (2007). Credit risk management: How to avoid lending disasters and maximize earnings. McGraw-Hill.
- Choudhry, M. (2022). The principles of banking. John Wiley & Sons.
Other resources:
ELE – Web-based and electronic resources will be posted and made available throughout the module .
| Credit value | 30 |
|---|---|
| Module ECTS | 15 |
| NQF level (module) | 6 |
| Available as distance learning? | Yes |
| Origin date | 14/05/2025 |