11Cs for better credit analysis in Asia

Communication

A communication breakdown is a simple problem, but it can easily destroy a whole bank. Poor
communication, up and down the line, is deadly. For up standard the communication system a
lender must concern about credit quality objectives and upward communication system. Credit
quality can be judged through various information software in this modern IT era.

So, IT knowledge is very much essential for all credit officers. Without IT knowledge, it is not
possible to communicate properly for better judgment of credit proposal in this 21st century
which is called “the century of technology”.

Contingencies

Many bankers may think that they are the brightest financiers, but no one looked at what would
happen to his or her loan if the economy slowed down. Bankers are supposed to look at every
bad thing that may happen and then decide how likely it is that and of those things will happen.

Competition

Competition is probably the most important of five C’s of bad credit. Bankers decided to win the
business decide to win the business. Unfortunately, that meant making his or her credit standard
as loose as or looser that everyone else’s.

The Banker must think how his/her product can be sold to the consumers and consumers will buy
only this Bank’s product not another Bank’s (competitor) products.