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The country's biggest banks have their own internal models that try to link the amount of capital put against a loan to the creditworthiness of the borrower.
The one-year lending rate is important in China because banks use it to calculate other interest rates with different maturities, adjusted for the creditworthiness of the borrower.
The one-year lending rate is important in China because banks use it to calculate other interest rates, based on the maturity of the loan and the creditworthiness of the borrower.
State-owned banks have cut back on corporate loans, which have typically been issued at or below the regulated rate of 5.3percentt, often with little regard for the creditworthiness of the borrower.
Loan documents are short and scanty, if they exist at all, and bankers often performed little analysis on the creditworthiness of the borrower or on the viability of the project.
However, the rampant growth in the sukuk market is currently being driven largely by a combination of conventional investors attracted by the strong creditworthiness of the borrower, regardless of the technicalities of the marginally differing structure, and by conventional borrowers seeking to broaden the investor base by appealing to the more religiously observant.
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Anyone holding such loans relies solely on the creditworthiness of the borrowers to be repaid.
They have a natural incentive to lend – that is how they make their money – and it would be unwise for the government to direct them to do so where they are unsure of the creditworthiness of the borrowers.
After the war, Mr. Bernstein taught at Williams College and then became a loan officer in a commercial bank in New York, learning about risk, he later explained, as he assessed the creditworthiness of the borrowers.
Moreover, the increase in default rates was greatest in districts where a larger proportion of mortgage loans were sold on within one year.Worse, this negative link is most visible where the incentives to check on the creditworthiness of the borrowers were likely to be weakest.
In any event, Lawson makes loans based not on the careful evaluation of the creditworthiness of the borrowers and the expected profitability of their proposals.
More suggestions(11)
creditworthiness of the trading
creditworthiness of the counterparty
creditworthiness of the nation
creditworthiness of the utility
creditworthiness of the issuer
creditworthiness of the city
creditworthiness of the buyer
creditworthiness of the customer
creditworthiness of the tenant
creditworthiness of the company
creditworthiness of the investment
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