How to Protect the Bank

This course provides participants with a closer look at protecting global banks from credit losses.

It explains the correct use of collateral, covenants and subordination, and the impact they have on mitigating credit risk.


This is a foundation course for graduate entrants with no experience in retail and corporate banking.

Learning Outcomes

At the end of this course participants will be able to:

  • Identify the three main credit protections banks can use
  • Explain how collateral improves the bank’s position
  • Define the purpose of covenants
  • Explain different types of covenant and potential problem areas
  • Identify events of default
  • Describe contractual and structural subordination and subordination in action

Course Content

  • Collateral
  • Collateral impact on recovery
  • Strengths and weaknesses of types of security
  • Fixed charge and alternatives
  • Classes of collateral
  • Covenants
  • Establishing the purpose of covenants
  • Types of covenants – representations and undertakings
  • Problem situations with covenants – actions on a breach
  • Events of default
  • Fixed and floating charges
  • Subordination in action
  • The ranking of creditors in insolvency
  • Corporate structures and the impact on lending
  • Contractual vs. structural subordination


of our clients would recommend Alpha to a colleague or peer


of a cohort was promoted within 2 years after participating in an Alpha course.


of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

Knowledge Exchange Evangelists

We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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The team are so friendly and pleasant to work with, everyone is very professional and keen to help us. Building a relationship over the past couple of years helps us to feel like the Alpha team are even more able to understand our needs and provide more proactive solutions.
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