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.
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- Swap Transactions
A swap transaction involves a spot transaction along with a corresponding forward contract that will ultimately reverse the spot transaction. Many forward contracts are negotiated for this purpose.
- Representative Money
Representative money alternatively called representative full-bodied money can be defined as the money that represent the commodity money to ...
- Rate Sensitive Liabilities (RSLs)
RSL or rate sensitive liabilities are those liabilities whose value changes with the change in market interest rate.
CAP is a structure using an option that results in the setting of a maximum interest/foreign exchange rate on a liability.
- Cash management
Cash management is concerned with the meaning of : (i) Cash flows into and out of the firm. (ii)Cash flows within the firm and (iii)Cash balances held by the firm at a point of time by financing deficit or investing surplus cash.
- Security Analysts and Traders
Security analysts and traders are usually found in a bank’s bond department and in its trust department.
Futures Contracts to buy something in the future at a price agreed upon in advance. First developed in the agriculture commodity markets but