I am interested in understanding the five
CORE principles that govern the practice of lending. I want to know the standards and guidelines that financial institutions and lenders typically adhere to when providing loans.
7
answers
Leonardo
Sun Jan 26 2025
The lending process in banking institutions rests on fundamental principles.
CherryBlossomGrace
Sun Jan 26 2025
Stability ensures that the lending practices do not lead to undue volatility in the financial system.
Tommaso
Sun Jan 26 2025
Safety is paramount, ensuring that the funds lent will be returned.
CryptoAlly
Sun Jan 26 2025
Liquidity is also crucial, allowing banks to meet short-term obligations without undue strain.
Andrea
Sun Jan 26 2025
Diversity in lending portfolio helps mitigate risks associated with any single loan.