Analyzing the Creditworthiness of Individuals – Back to Basics

Event ID:17697

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On-Demand (OD)     $299.00
Duration: 90 minutes, including question and answer period.
Presenter(s): Gary Deutsch, CPA, president, BRT Publications, LLC
Price: $299.00, On-Demand includes full audio presentation, question and answer session, and presentation slides.
Who Should Attend? Loan officers, management, financial officers, credit officers, credit analysts, portfolio managers, credit review auditors, persons responsible for loan reviews


To evaluate the creditworthiness of individuals, credit analysts may use any of several primary sources of information, depending on the amount of credit sought and whether a consumer or commercial transaction is involved. The most common information sources are:

  • Loan applications and credit agency reports which are the primary sources of information on which credit decisions about consumer loans are typically made
  • Income tax returns which are the best source for specific information about an applicant’s income-generating ability and some kinds of expenses
  • Personal financial statements


In the commercial credit context, personal financial statements, income tax returns, and credit agency reports each have a role. A personal financial statement is usually the best single source for information about the financial capacity of an applicant, because it indicates assets, liabilities, and net worth, and often includes some income and expense data. It also may provide for supplemental information that indicates how the applicant has handled other credit and the extent of contingent obligations.

Credit agency reports are necessarily obtained from independent sources. They supply information for the final part of the credit evaluation process that every applicant hopes will be answered affirmatively. Assuming the applicant’s financial capacity can be established, can he or she be expected to repay the loan or honor the guaranty as agreed?

This webinar will discuss loan applications, income tax returns and credit reports, but will focus on personal financial statements, since bankers intuitively look to this source of information first and foremost in establishing financial capacity.

Please join, Gary Deutsch, CPA MBA for this important webinar as he discusses the essential components of analyzing the creditworthiness of individuals to benefit both new and seasoned analysts.


The discussion of the individual creditworthiness will cover the following topics:

  • Uses of a personal financial statement based on information in statements, reliability of information, and lender liability warnings
  • Standards for preparing personal financial statements
  • Assets including cash, investments accounts, notes, contracts receivable, cash surrender value of life insurance, real estate, motor vehicles, personal property, and other assets
  • Liabilities including loans, notes, and contracts payable
  • Net worth including discretionary adjustments, statement of changes, income and expense, contingent liabilities, life insurance, and protection from false information
  • Changes in circumstances
  • Income tax returns



Your conference leader for “Analyzing the Creditworthiness of Individuals – Back to Basics” is Gary Deutsch, president, BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations. Mr. Deutsch is the founder and president of BRT Publications LLC. Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region. QUALITY COMMITMENT

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