Corporate banking for small and medium-sized firms (E)

First cycle

• Upon successful completion of the course, students will be able to understand the role of banks and financial intermediaries for SMEs
• Distinguish between different forms of financing and their mechanisms
• Gain fundamental knowledge of capital structure and its impact on firm value and financing costs
• Comprehend the credit risk process and understand creditworthiness assessments
• Apply key methods for structuring financing solutions in small and medium-sized enterprises

Basic knowledge of corporate finance and financial accounting is recommended

• Fundamentals of banking and financial intermediation
• Capital structure and financing instruments (equity, debt, and mezzanine capital)
• Revolving credit facilities, overdrafts, factoring, and leasing
• The credit risk process: creditworthiness assessment, rating methodologies, credit approval
• Financing costs and their components (e.g., interest margins, processing fees, security-related costs)
• Interest rate sensitivity and risk management (e.g., interest rate swaps, caps)
• Real-life examples and case studies

• Abor, J. Y. (2017). Entrepreneurial finance for MSMEs: A managerial approach for developing markets. Cham: Springer.
• Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management. Boston, MA: Cengage Learning.
• Yhip, T. M., Bijan, M. D., & Alagheband, M. D. (2020). The practice of lending: A guide to credit analysis and credit risk. Cham: Palgrave Macmillan.

Exam

English

3

Lectures with interactive elements, case study analysis, group work, class discussions, exercises on credit risk evaluation and financing calculations.

1