Posts Tagged ‘Bad credit’
Risk of Credit
Extension of credits that have been established for many companies and institutions in the financial instruments and market penetration depth, and thus increase the risk of loss and destruction of assets, then the waves of uncertainty when you do not have the time or advice to reduce the risk of bad credit.
Risk of credit.- “It is possible losses due to the failure of the borrower or counterpart in a transaction directly or indirectly resulting from non-payment, partial payment or lack of time in the agreed payment obligations.” (The most important is to set the value of risk)
It is important that a bank or credit must judge the solvency of their current and future borrowers and efficiently manage the portfolio, considering that “to extend credit” could be involved in three types of risk:
1) The risk of liquidity,
2) Instrumentation and legal risk
2) Risk solvency.
