TIOB launches basics of Credit Risk Modelling Course
January 14th 2019 – The representative of the Deputy Governor: Financial Stability and Deepening, launched the basics of Credit Risk Modelling, through Tanzania Institute of Banker’s online Learning platform.
Launching the course in Dar,es salam – Mr. Nassor Omary , , applauded the Institute for completion of the online learning platform and the kick-off of this important course that will enable financial institutions to make better lending decisions, to improve assessment of credit risk, and will help financial institutions know the risk factors to be aware of .
Developed in partnership with U.S. based institution, Kentara Analytics, The Basics of Credit Risk Modelling is the FIRST ONLINE COURSE of the Credit Risk Modelling Curriculum accessible on https://tiob.teachable.com/. The curriculum will also cover Modelling defaults; Credit Risk data; Scoring Models and Credit Ratings; Analytics; Simulations ; Capital Allocation and Risk contributions ; and Risk – adjusted Performance Measures.
The risks associated with credits and lending has grown over the years; there is need to fill in this gap and address the default risks that lenders and borrowers are exposed to. A key example is the significant growth of Non-performing Ls (NPLs) as banks continue to issue new loans.
The Basics of Credit Risk Modelling course offered by the Tanzania Institute of Banker’s has three tracks: Analyst – basic credit risk calculations using Microsoft Excel; Non-Analyst – overview of credit risk modelling and its components, expected and unexpected losses, and regulatory capital; and the Full Track – which includes both the Analyst and Non-Analyst tracks.
Speaking during the launch, Mr. Patrick Mususa, the Executive Director at TIOB, said “We are excited about this new learning initiative at TIOB as the online school will offer cost effective and efficient learning opportunities for professional bankers and those in the financial industry in Tanzania and beyond. The Basics of Credit Risk Modelling course that will kick off today is built as a foundation for the treatment of different types of loans, and aimed to ENHANCE PERFORMANCE in handling NPLs.
NPLs are a key factor in the performance of any financial institution which sells credit as one of its core business activities. An increase in the ratio of NPLs against the total loan book of a financial institution should be only be tolerated if it does not put at risk the funds available to the financial institution to enable its daily operations.
Emphasizing on the importance of taking this course , Mr. Nassor called on all financial institutions to register and ensure all those dealing with Credit matters take this course……
The Tanzania Institute of Bankers (TIOB) was established in 1993 under the Companies Ordinance (Cap 212) of the laws of Tanzania, with the mandate of promoting the banking profession by providing professional banking education and skills development to bank staff in Tanzania. This mandate followed the liberalization of the banking and financial sector in the country which opened doors to private banks and financial institutions. In the formative stages, the aim would be to alleviate the acute shortage of professional and efficient career bankers, thus promoting quality banking and financial services to the public.
The Tanzania Institute of Bankers aspires to become a world class Institute of bankers offering world class training in banking to its members, adhering to professional excellence founded on ethics, integrity and quality in all its undertakings.
TIOB offers five core services – Certification Examinations; Onsite and Online Library Services; Continuous Banking Education Programmes; Continuous Professional Development Courses; and Membership Services.