📝 One-liners · 66 cards
Credit Control monitoring
What is the primary objective of credit monitoring in banks?
The primary objective is to ensure that credit facilities are used for the sanctioned purpose and that the borrower's financial health remains adequate to service the debt.
What is the purpose of a credit information report in credit monitoring?
It provides borrower's credit history and repayment track record.
What does the term 'credit control' mean in the context of bank lending?
Credit control refers to the systematic process of supervising and regulating the credit extended by a bank to ensure repayment and prevent deterioration of loan quality.
What is 'evergreening' of loans and why is it a concern in credit monitoring?
Renewing loans to hide defaults, masking true NPA status.
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