The Massachusetts Bankers Association Apprenticeship program is designed to provide basic requirements necessary for Credit Analysts to identify and understand risks commercial borrowers face and how to begin the process of determining their financial condition and creditworthiness.
In this course, Apprentices will learn skills and knowledge covered in five modules to perform the Job Functions in the Apprenticeship Program. The five areas of coverage are:
 
Job Function 1: Analyzing Credit Data and Financial Statements to Determine the Degree of Risk Involved in Commercial Lending

• Bank Regulations Related to Commercial, Industrial and Real Estate Lending
• Know Types of Industry, Business, Management, and Risks Associated with each 
• Understand Accounting Equation, Principals, and Assumptions 
• Know How to Create a Financial Statement from Economic Events and Journal Entries
• Identify Various Income Tax Return Forms and How to Analyze Each Form

Job Function 2: Complete Loan Applications, Credit Analysis & Summarize for Submission to Loan Committees

• Understand Types of Background Information Required on a Loan Application
• Know Types of Financial Data and Supplemental Credit Data on a Loan Application
• Know Types of Credit Analysis Required for Each Type of Industry
• Know How to Start Outlining Credit Analysis Summary for Loan Committee 

Job Function 3:Generate Financial Ratios, Using Computer Programs to Evaluate Customers' Financial Condition

• Know the Structure of the Balance Sheet, Income Statement & Cash Flow Statement
• Understand Financial Statement Components and Factors That Influences Them
• Know Principles of Spreading Financial Data on Computer Programs
• Know How to Calculate and Interpret Financial and Credit Ratios & Cash Flow

Job Function 4: Analyze Financial Data, Sales & Income Growth and Quality of Management Performance

• Utilize Financial Ratios to Determine the Asset Conversion Cycle 
• Determine Financial Impact of Changing Financial Ratios 
• Building Financial Forecast Utilizing Historical Performance and Assumption
• Determine Sustainable Sales and Income Growth While Maintaining Financial Strength

Job Function 5: Prepare Reports Including the Degree of Risk Involved in Extending Credit or Lending Money
Instruction Methods:
The course includes lectures, hands-on exercises, calculations of key ratios, and group analysis of case studies. Case studies are based on actual companies and lending situations. Pre-reading and homework will be given throughout the course.
Prerequisites: Accounting I (strongly encouraged), Account II (a plus).
Note: Participants will need a financial calculator that performs "Time Value of Money" calculations. It must have the 5 Time Value of Money keys: N, I/YR, PV, PMT, FV.