Lending to Municipalities

Most banks do not specialize in Lending to Municipalities and Other Governmental Units. However, when the opportunity presents itself, those banks struggle to perform the proper credit analysis to determine creditworthiness. The purpose of this course is to focus on the major credit factors that should be examined to predict the repayment capability of a Municipality or other Governmental Unit.

Although this type of lending is not a target market for many banks (particularly Community Banks), there are some credit opportunities that can lead to lucrative fee-based business, such as cash management and investment management. Additionally, financial institutions find that having a relationship with local municipalities can create significant goodwill in the community, which can translate into more business from consumers and businesses in the area.

This course will explore the major differences between credit analysis on local governments and commercial real estate / commercial & industrial type borrowers. Participants will learn the appropriate information to request and how to use financial data and other information to effectively underwrite this type of borrower. Also, participants will be able to identify opportunities to market the proper type of credit facilities to local governments.

Covered Topics:

  • Different types of local government structures in the US in order to determine potential creditworthy government structures
  • How to complete a review and financial analysis of a municipal's financial statement
  • The common credit requirements of municipalities
  • The best credit structure based upon the credit needs of municipalities
  • Locating and use of publicly available information to assist in the analysis of municipal borrowers

Who Should Attend?

This course has value for lending and credit personnel with various backgrounds, experiences and areas of expertise including, but not limited to:

  • Senior Loan Officers
  • Senior Credit Officers
  • Commercial Loan Officers
  • Branch Managers
  • Credit Analysts
  • Loan Review Officers
  • Internal Auditors
  • Consumer Lenders

"Very 'to the point'!!" -Kenda H., Bank of the Cascades