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What does the the monitoring activity of the business ensure?

      

What does the the monitoring activity of the business ensure?

  

Answers


Kavungya
- Funds advanced are used only for the purpose stated in the customer’s credit application
- Financial condition of a borrower is regularly tracked and management advised in a timely fashion
- Borrowers are complying with contractual covenants
- Collateral coverage is regularly assessed and related to the borrower’s financial health
- The institution’s internal risk ratings reflect the current condition of the customer
- Contractual payment delinquencies (defaults) are identified and emerging problem credits are classified on a timely basis
- Problem credits are promptly directed to management for remedial actions.
Kavungya answered the question on March 26, 2019 at 09:34


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