THE IMPORTANCE OF NON-FINANCIAL FACTORS IN THE ANALYSIS OF BANK CREDITS
THE IMPORTANCE OF NON-FINANCIAL FACTORS IN THE ANALYSIS OF BANK CREDITS

Summary/Abstract: In granting loans, commercial banks analyze, in addition to creditworthiness indicators, also the non-financial factors from the client’s activity. These factors are internal and external. Internal factors regard the nature and specific of the client’s activity, its strategy and management. External factors regard legislation, geographical setting towards the supply sources and retail markets, transportation route, macro-economic context etc. The analysis of the non-financial factors allows the assessment of the client’s activity quality, his risk profile, as well as the vocation to credit of the customer applicant.

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