Means of reducing credit risk

Imola Driga

Annals of the University of Petrosani, Economics, 2004, vol. 4, 69-75

Abstract: Credit risk represents the possibility that the bank will suffer a loss of income because some borrowers cannot exactly follow the lender’s repayment terms from different kind of reasons. In such cases, the account of the customer inevitably becomes overdue, the granted loan turns into a non-performing credit and the lending bank registers a decline of its profit. In order to prevent such situations, commercial banks must take certain measures of reducing credit risk.

Keywords: credit risk; credit analysis; credit pursuit; guarantees; prudent regulation; provisions. (search for similar items in EconPapers)
Date: 2004
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.upet.ro/annals/pdf/Annals-2004.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pet:annals:v:4:y:2004:p:69-75

Access Statistics for this article

More articles in Annals of the University of Petrosani, Economics from University of Petrosani, Romania
Bibliographic data for series maintained by Imola Driga ().