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The Application Of Financial-Economic Indicators Within Determining The Credibility Of Economic Agents In Offering Banking Credits

Diana Cãlugãreanu

from Academy of Economic Studies of Moldova, Centre for Studies in European Integration

Abstract: Due to the significant importance that banking institutions have in the financial sector, this article specifically addresses a particular important aspect of their business, namely taking a credit decision as a result of assessing the credibility of the banking client. The current approach to the issues of the credibility of economic agents and their ability to pay is conditional on the fact that, under the current economic conditions, many enterprises do not have enough money to develop their economic potential. The necessity and usefulness of financial analysis as a tool for diagnosing the activity and performance of an enterprise is concretized by the complex and permanent impact on the decisions on granting credits, their size and the foreseeable risks. There are different views on the most reliable methods of diagnosing the company's financial performance. This article includes an analysis of the economic and financial indicators used by banking institutions to fix strong and weak points in order to assess the credibility of the banking client.

Keywords: credibility; financial performance; profit; profitability; liquidity; solvency (search for similar items in EconPapers)
Date: 2017
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