Essays on Credit Scoring

Significance of Accounts Receivable Practice

The most primary element for the success of a business is the way in which the systems of accounts receivable management, collections and billing are maintained. Often, this type of management collectively is known as the system of collections management. The main key to the success of this system is to manage it diligently. It is because having large amount of customers is not enough to run a successful business; revenue needs to be collected from these customers (Clarke, 2016). There are a number of reasons for a business setting up the accounts receivable in a given organization. When ...

Introduction

The data presented in this project is from the Lendingclub.com (n.d). The data in the website is a wide representation of information concerning loan data collected from members from 2007 to 2012. The period in which this data was collected is synonymous with the financial crisis in the global market. The impact of the financial crisis was far reaching. It affected the lending rates and the approval criteria for loans. Previously, the fiscal policy involved in lending loans by financial institutions cushioned the borrowers. This is because the loans fetched low interest rates and were consequently easy to repay. After ...

PROBLEMS IN THE REGULATION AND SUPERVISION OF INTERNATIONAL BANKS AND NONBANK FINANCIAL INSTITUTIONS

INTRODUCTION The banking and non-banking financial institutes have witnessed both growth and change in the functioning practices across the globe. Many economies have suffered severe financial crisis due to the global economic recession. It has disrupted the economic activities. The risk management teams and policy makers have focused their attention towards redefining the regulation and supervision practices of international banks and non-bank financial institutions. The objectives of these practices are to ensure stability and growth in the financial practices. This report will focus on highlighting the changes in the regulatory practices which have been implemented on both ...

Risk is inherent in all characteristics of a commercial procedure; equally, for banks and financial organizations, credit risk is a necessary issue that requires handling. Credit risk is the likelihood that a borrower will fall short in meeting his or her responsibilities in conformity with contracted terms. Credit risk, consequently, occurs from the bank’s transactions with or loaning to business, persons, and other financial establishments. This area of credit evaluation and measurement is enormous and every new account fronts new tests. When an application is obtain, what does a financier searches for in it? Answer to this is not merely comprehensive but ...