Overview of Credit Management
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is credit management in the context of banking?
Credit management is the process of granting credit, setting terms, monitoring, and recovering funds to minimize credit risk and maximize returns for a bank.
What is the meaning of 'credit' in banking terminology?
Trust extended by lender allowing deferred repayment by borrower.
What does the term 'credit risk' refer to in banking?
Credit risk is the risk of loss arising from a borrower's failure to repay a loan or meet contractual obligations as per agreed terms.
What is 'credit culture' in a banking institution?
Shared values and norms guiding credit decision-making across the bank.
What is the primary objective of a bank's credit policy?
The primary objective is to deploy funds profitably while maintaining portfolio quality, ensuring adequate liquidity, and complying with regulatory guidelines.
What is the purpose of a 'credit manual' in a bank?
Documents policies, procedures, and standards for consistent credit operations.
What is meant by 'credit appraisal' in banking?
Credit appraisal is the systematic evaluation of a loan proposal covering the borrower's character, capacity, capital, collateral, and conditions before sanctioning credit.
What is 'credit risk appetite' in banking?
Maximum level of credit risk a bank is willing to accept.
Video classes for this chapter
Overview of Credit Management Part 1
Overview of Credit Management Part 2
overview of credit management
Overview of Credit Management
overview of credit management
More chapters in Module C - Credit Management
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