Category: Credit Risk Management
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 [...]
How measuring the ‘Pivot Factor’ can fill Credit Risk assessment gap post COVID
These are unprecedented times for lenders. Customer cashflows are depleted, loan track can’t be ascertained due to moratorium, making it increasingly [...]
“Emergency Credit Guarantee” for MSME – Decoding the fine print
Emergency Credit Guarantee for MSME has been unveiled. GOI seems to have pleasantly surprised the banks. There are minimal ambiguities in the eligibil [...]
Banks being viewed as a panacea for all ills?
While prompt Regulatory actions have tried to address liquidity and other issues of borrowers, there is heavy reliance on Banks to deliver. However, t [...]
Banks: Evolving asset strategies
Banks need to look at ingenuous ways of growing AUMs - draw up enabling credit lines for cash flow mismatches for existing low leveraged customers. Ba [...]
Can Credit Scoring replace Judgemental Lending?
With all the excitement in the last decade about data and credit scoring, there are some areas that may still need the human skill tom judge credit ri [...]
Financial Analysis is not Credit Risk Assessment (SME Lending Models 2)
Financial analysis is the most exciting part for many bankers. Evaluation of ratio trendlines, NWC availability or future cash flows is logical & [...]