Credit analysis, by which one calculates the creditworthiness of a business or organization, is one of the most important functions of a bank.
Credit analysis refers the process of arriving to a definite ‘yes’ or ‘no’ answer to every credit applications by evaluating the applications in terms of the viability of the project for which the credit has been sought, the level of credit risk or chance of default inherent in the application & finally synchronizing the applicant’s details with the loan portfolio statement of the bank.
More from this Section
- Money supply
Money supply is considered as one of the important variable that affects the over all macro economy. It refers to the total amount of currency ...
- Value Date
Value Date is the date on which foreign exchanges bought and sold have to be delivered and the prices payable for them in local currency have to
- Direct Foreign investment (DFI)
The methods of increasing international business extend from the relatively simple approach of international trade to the more complex approach of acquiring foreign firms or establishing new subsidiaries. Any method of increasing international business that requires a direct investment in foreign operations normally is referred to as a direct foreign investment (DFI).
Duration refers the average life of an asset or liability, or more technically, the weighted time to maturity using the relative present values ...
Haircut is the difference between the market value of a security and its value when used as collateral. The haircut is intended to protect a
- Payback period
Payback period is length of time required for an asset to generate cash flows just enough to cover the initial outlay.
- Universal Bank
Universal Bank is a bank or a financial institution that has the legal authority to offer all financial services and may, thus, be engaged in