Credit monitoring – is a system of bank control of the entire procedure for providing – it is manifested in the continual control of the passing of individual loans, as well as the quality of the mortgage profile in general.
Tracking are of two types: tabs on the loan customer and monitoring of the lending lender.
The majority of the products for the lender participate in the tabs on the debtor: legal, security, working, if required – products involved with foreign currency operations and securities transactions, analytical, and others. Needless to say, the credit division plays the primary role.
Loan officer is obliged to repair the tracking activities and report regularly about the development fashioned with the distribution of this analytical conclusions concerning the level of risk per loan, and credit manager – about a bank’s loan portfolio overall.
Viewing for a credit is aimed at obtaining information regarding the fund receiver during the duration for which the loan is issued, to impose control over the alteration the worse for the bank side of the information that is the basis for main assessment of solvency associated with borrower.
Track of credit varies from a preliminary evaluation of credit history:
– According to the time of fulfillment. Always check of credit standing is carried out prior to issuing the credit, plus the observance starts following the issuance regarding the loan;
– based on desired purpose. Credit check is conducted to identify threat before making a final decision on financing, and credit tracking is carried out to determine the credit risk as time passes,when the credit is given;
– According to periodicity. Examine of credit ranking is done in its primary type as soon as, and tabs on loan is present, i.e. regular or organized;
– Relating to volume – when determining the credit standing, reliability regarding the fund receiver and collateral is examined.
The purpose of keeping track of the mortgage is following:
Protection associated with the lender’s estate from losings;
Fulfilment of regulatory requirements of the Central Bank;
Observance of problems of loan arrangement;
Maintaining the credit ranking for the debtor on correct amount;
Enhancement of this top-notch credit portfolio;
Well-timed company of the use issue lenders.
The thing of monitoring is conformity utilizing the loan contract.
The lender draws awareness of the timely submission of most documents specified in the agreement (economic statements, certified because of the Tax Inspectorate, the in-patient transcripts towards the balance sheet, etc.), verifies the correct utilization of credit, timeliness and completeness of repayment of major financial obligation and passions.
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