Bank lending and loan administration pdf
Emerging Market Bank Lending and Credit Risk Control
Previous Version. Retail lending is defined as closed- and open-end credit extended to individuals for household, family, and other personal expenditures. This includes consumer loans, credit cards, auto loans, student loans, and loans to individuals secured by their personal residences, including first mortgage, home equity, and home improvement loans. This booklet discusses risks associated with retail lending and provides a framework for evaluating risk management activities. More information regarding specific retail lending products are described in other booklets of the Comptroller's Handbook, including " Residential Real Estate Lending ," " Credit Card Lending ," " Student Lending ," and " Installment Lending.
Some in trust payable on demand. Through the performance of this role, Banks act as reservoir for surplus funds and thus lend safe portion of these funds to clients that have genuine needs for them. The banks have special responsibility to ensure effective management of these funds kept in trust with them by depositors. Lending activities are prominent at all levels of our economy, which gave rise to loan management and credit administration. This credit analysis, documentation, disbursements and monitoring of loan to ensure repayment of both principal and interests on due dates becomes pertinent.