Speaker: Dr. Victor Wai

Only cash can repay a loan.  However, some bankers continue to focus on profit in their credit evaluation.  Based on the experience of the speaker, there were a lot of companies which showed profitability and yet got into financial troubles.  The reason is the lack of cashflow to repay their maturing debts.  Therefore, many international banks nowadays focus on the capability of the companies to generate cash from their operations. 

In the past, international banks used to centralize new recruits at their headquarters to re-train them from the use of accrual based accounting information to the use of cash based financial information for corporate credit analysis.  Due to the escalating costs of such efforts, this type of credit training is reducing among international banks.  There seems a need to incorporate this kind of training into post-graduation professional training in order to equip young people for corporate banking jobs.  This seminar introduces this cashflow based lending doctrine.