professional banker certificate

Created by: jessreidxx
Created on: 03-03-17 15:57

lending code

self regulatory code sets out minimum standards of good lending practice when dealing with consumers, micro enterprises (less than 10 employees, less than 2million euros) and charities (income under £1m) enforced by the lending code standards board.

1 of 10

principles of lending

the person, amount, purpose, term and repayment

2 of 10

character

the integrity of the borrower

3 of 10

capacity

- age, experience and reputation

4 of 10

commitment/capital

- the amount of finance provided by the customer can indicate a customer’s commitment to the purpose.

5 of 10

simplicity of title

formalities of arranging the security can be easily, quickly and cheaply completed.

6 of 10

simplicity of value

- important that you can rely on the value placed on the security, it won’t be down valued.

7 of 10

realisability

must be capable of quick realisation without undue formality, no delays in the procedures which could increase possible loss of the debt and interest.

8 of 10

credit scoring

an automated technique used to assist lenders in the analysis and assessment of a loan application. Enables large volumes to be processed, acting as a filtering mechanism for loans that will be automatically declined.

9 of 10

behavioural scoring

- a method of determining the credit risk associated with an existing account

10 of 10

Other cards in this set

Card 2

Front

the person, amount, purpose, term and repayment

Back

principles of lending

Card 3

Front

the integrity of the borrower

Back

Card 4

Front

- age, experience and reputation

Back

Card 5

Front

- the amount of finance provided by the customer can indicate a customer’s commitment to the purpose.

Back

View more cards

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professional banker certificate