Essays on rational absurdity of banking
How lenders assess borrowers, deal with uncertainty, and make credit decisions under imperfect information.
Lending business can be summed up in two sentences: I (customer) need money. You (Bank) give money and charge interest. But lending isn’t so simplistic! Consider the permutations- ‘I need money now, but you will give after 4 weeks.’ ‘You are reluctant but may give loan with 110% security. I…
Technology has benefits. It can improve TAT, data access, accountability, reduce operational risk & build competitive advantage. Full workflow digitisation suite- Tabs +CRM+LOS+CBS integration+ LMS+DMS, seems impressive. “Let’s get it automated” is an oft repeated indulgence we hear during our engagements. But the devil is in details! Considering investment in…
Financial analysis is the most exciting part for many bankers. Evaluation of ratio trendlines, NWC availability or future cash flows is logical & fun way to credit decisioning. Possibly the next best thing to being an oracle! Who can counter argue when nos. show the future? Here is what spoils…