Category: Credit Risk Management
Understanding Liquidity Assessment for Credit Risk – PART 2 (NWC)
Even after we have taken due care of matching correctly graded current assets to current liabilities, the business eventualities, customer behaviour a [...]
Understanding Liquidity Assessment for Credit Risk- PART 1 (Current Ratio)
Liquidity assessment using Current Ratio is a powerful tool and a staple for credit risk analysts . But it has its limitations. In this three part ser [...]
How many Credit Covenants are necessary in a Sanction Letter?
While there are no set parameters on how many credit covenants should be there in a Sanction Letter, one has to keep in mind that ratios tend be inter [...]
How WFH impacts the Risk Management culture in Banks?
Many in the banking industry have talked about the amazing cost savings that WFH brings. But beyond some savings, there are many costs we may have pai [...]
Will it remain a lender’s market for long!
Market is rejoicing that credit growth is back. But it was not the doing of the banks. Instead it seems to be lender's market with long wait for credi [...]
Credit Evaluation: How much information is Enough?
How much information is enough for credit evaluation? For a streamlined process a delicate balance needs to be maintained between timeliness and need [...]
Credit Sense – Approach and Perspectives
Risk officers and Relationship managers are always at each other’s throats owning to difference in their perspective, often missing out what lies beyo [...]
Banking after Moratorium: Three key Monitorables
With the moratorium behind us, the attention is now on how the loan portfolios will behave. Sumit Kakkar identifies three crucial things that banks ne [...]
Over reliance on credit rating: How Banks constrain SME Lending
Banks are flush with liquidity, but still grappling with twin issues – where to deploy the money and how to source the right credit which meets the st [...]
Way Forward for Banks: Conservatism, Capital and Risk taking
From knee jerk reactions to nudge of regulators through MSME guarantee scheme to TLTRO to capital raise, Banks have gone through the COVID learning cu [...]