IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-32197-0_5.html
   My bibliography  Save this book chapter

How It All Fits

In: The Practice of Lending

Author

Listed:
  • Terence M. Yhip

    (University of the West Indies)

  • Bijan M. D. Alagheband

    (McMaster University and Hydro One Networks Inc.)

Abstract

This chapter unites the abstract discussion on principles and techniques of the criteria-based approach in a case study using the financial statements of a fictional airline company named AY Intercontinental Airways. Through the case study the reader applies, in one go, the background knowledge to construct a borrower risk rating (BRR) scorecard with the necessary building blocks, create descriptors, apply point-in-cycle adjustment, prepare pro forma financial statements, construct a cash flow model for stress testing “what if” scenarios, apply overrides, and determine the final risk rating. Comparing the BRR based on current financials to the BRRs, the PIT adjustments temper the risk rating as expected. The risk assessor may execute the adjustments in Business Risk, or alternatively in Financial Risk using projected financials.

Suggested Citation

  • Terence M. Yhip & Bijan M. D. Alagheband, 2020. "How It All Fits," Springer Books, in: The Practice of Lending, chapter 5, pages 183-224, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-32197-0_5
    DOI: 10.1007/978-3-030-32197-0_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-32197-0_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.