Maintenance and improvement of credit risk management practices by banks and lenders have become a top priority. Let us share with you some tips to improve lender's insights into credit risk and take appropriate measures to maximise the risk/return profile.
How efficient is your collection and monitoring of covenants?
1. Review and monitor covenants
Covenants are conditions agreed to by the borrower as part of a loan term in commercial loans. If they are effectively monitored, it can provide lenders with an early warning of loan deterioration.