You are on page 1of 4

Week 3 Banking and the Management of Financial

Institution
Module 004 Managing Credit Risk
Week 3 Banking and the Management of Financial Institution

The attempts of financial institutions to solve these problems help


explain a number of principles for managing credit risk:
• Screening and monitoring
• Establishment of long-term customer relationships
• Loan commitments
• Collateral and compensating balance requirements
• Credit rationing.
Week 3 Banking and the Management of Financial Institution

The attempts of financial institutions to solve these problems help


explain a number of principles for managing credit risk:
• Screening and monitoring
• Establishment of long-term customer relationships
• Loan commitments
• Collateral and compensating balance requirements
• Credit rationing.
Week 3 Banking and the Management of Financial Institution

Off-Balance-Sheet Activities

• Loan Sales
• Generation of Free Income

You might also like