Fundamentals of analysis and collateral

Module 04 / 5 · 65 min

The order of judgment: first can and will the borrower repay from the business, and only then how well collateral protects the bank if it does not.

In this module you will learn to

Use the 5 Cs to organize a credit judgment and its evidence
Compute and interpret five basic ratios
Identify acceptable collateral and apply valuation haircuts
Compute collateral coverage and the used vehicle share
State the insurance requirements for collateral

Built on

Erudite Africa training module: Level 1: Credit Foundations (October 2026)
Erudite Africa credit training program overview and Ethiopian context module (October 2026)
A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
NBE directives as listed in the lessons, including SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/91/2024 and CRB/02/2019
Ethiopian laws as cited: Banking Business Proclamation No. 1360/2025, Movable Property Security Right Proclamation No. 1147/2019, Proclamation No. 97/1998

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.