Characteristics of Credit

Credit is characterized as the certainty of the loan specialist on the capacity and eagerness of the borrower to reimburse the obligation according to calendar of installment.

a. Credit is one of the center capacity of a bank.

b. Credit is principle wellspring of minding and income of a bank.

c. Credit default unfavorably influences banks benefit, capital sufficiency and income.

d. Excessive credit may bring debacle.