Essays on Creditworthiness

Introduction

The bank of Dhofar was started with only two branches, One in Salalah and another one in Muscat, and was first incorporated in January 1990 as a public joint stock company in Oman to conduct banking activities for the investment, retail and corporate sectors. At its inception, the bank had the name Bank Dhofar Al Omani al Fransi, which was changed to the current name in 2003 after the bank met all approval requirements. Before the name change, Bank Dhofar Al Omani al Fransi had merged with the Majan International Bank in 2002. Over the years, the bank has ...

5 C’s of Credit 5 C’s of Credit In early times, the lack of financial institutions and absence of banks resulted in the exploitation of poor by the greedy financiers. Borrowers can only escape from the clutches of loan sharks if they have easy access to efficient credit networks. Moreover, credit network is also required so that the savers can deposit their money in reliable financial intuitions so that it can be channelized from the rich people to the poor industrialists (Ferguson, 2008). The primary relationship that money defines is between a lender and a borrower. This ...

Chapter 1

Nature of the Organization’s Business Under Armour is a multinational sports clothing and accessory company headquartered in Baltimore, Maryland. The company suppliers casual apparel and sportswear, and in 2006, it started offering footwear. The company sells its products worldwide targeting athletes at all levels as well as consumers having active lifestyles. To date, the company has opened various stores as well as factory outlets in various states and nations including Canada and China.

Organization’s History

1996-1998: Early Milestones 1996: Founding of the Company Kevin Plank founded the company in 1996 when he was 23 years old. He was the former ...

Question 1: Essential features of project financing

In project financing, parties agree to complete a project and to provide the financial resources required to complete the project. It also embodies an agreement between the parties that when the project is completed and starts operations, it will generate sufficient cash to cover its operating and debt service requirements. Besides, it involves assurance that if the project is disrupted, additional funds to restore it will be provided through insurance among other ways. In conventional financing, lenders consider the whole asset portfolio of the borrower to generate cash flows to repay their loans. On the contrary, lenders in project ...

Introduction

Mark to market, also called fair value accounting, has been one of the most controversial accounting methodologies in financial reporting. Mark to market refers to an accounting process in which the reporting entities report the value of assets and liabilities as per the current market value as opposed to the book price thus making the methodology highly subjective (Association of American Bankers, 2016: Serakibi, n.d.). Therefore, since the reported value is pegged on the prevailing market value, it follows that the value of the financial statement would change as the market changes. In most cases, the change in value ...

The process of borrowing a loan from any bank begins with an expression of interest by the borrower to borrow such funds as he might require. Thereafter, it is the obligation of the lending institution, Community bank in this case, to conduct an objective and fair evaluation of creditworthiness of the borrower. The credit evaluation process is a clearly outlined procedure that varies from one creditor to another and it seeks to ascertain the degree and ability of the borrower to repay the borrowed funds as agreed at the time of borrowing. ("eCFR — Code of Federal Regulations", 2016) The ...