Category: Credit Risk Management
Credit Risk Blindspots: Hidden Biases in Lending
Bias is an inherent human tendency, and recognising and minimising it requires deliberate effort. No matter how advanced the financial models or how e [...]
Assessing Borrower Liquidity: The Monsters Hide in the Details
For lenders, the Current Ratio is the staple measure of a borrower’s liquidity position. A good ratio shows that the inflows in the short term will ea [...]
Accelerating Financial Recovery: Leveraging ODR in the Banking Sector
By aligning Online Dispute Resolution processes with the principles outlined by the RBI, Banks and financial institutions can navigate disputes effici [...]
Liquidity Assessment for Credit Risk
Even after we have taken due care of matching correctly graded current assets to current liabilities, the business eventualities, customer behaviour a [...]
Liquidity Assessment for Credit Risk
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 [...]