Reality of financial risk

Contrary to the popular view, this does not require any judgement to be made on a borrower's ability - or inclination - to repay the loan, even under adverse conditions. The fact is that the absence of adequate risk evaluation can lead to very hazardous loan proposals when times are good, and w...

Full description

Saved in:
Bibliographic Details
Published in:Financial Director 2013-07, p.32
Main Author: Bibby, Simon
Format: Article
Language:English
Subjects:
Collateral
Costs
Interest rates
Loans
Regulation of financial institutions
Retention
Risk assessment
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Contrary to the popular view, this does not require any judgement to be made on a borrower's ability - or inclination - to repay the loan, even under adverse conditions. The fact is that the absence of adequate risk evaluation can lead to very hazardous loan proposals when times are good, and worse, to massive overcompensation for risk when times are bad.
ISSN:0961-2556