BFC 5914 BankingLending(u4e2du6587u6ce8u91cauff09.docx...

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BFC 5914 Banking Lending 1. What is 5Cs principle Character (the integrity of the borrower) Capacity ( the cash flows to repay the loan) Capital (the borrowers contribution to the project) Collateral ( the assets the borrower pledges 担保 ) Conditions Internal conditions external conditions covenants 1.1Character (以下关于 Character 的描述,错误的是?) 特点: Unlike many other loan application elements it is not easy to measure many elements of character require subjective judgements (不容易去衡量,因为主观性太强)(最重要,最难衡量的要 素) 衡量方法: Credit scoring (older) and AI (modern) systems try to generate a score that represents character using various measurable human attributes. ①Past customers are easier to assess than new customers. (老客户 比新客户更容易去衡量,因为他们早已存在于 bank record 当中) ②Personal loans tend to be easier to assess, but the concept of character can be more difficult for corporation (个人贷款比公司贷款 更容易去衡量) 定 义 : It captures the elements of ethics, honesty, morality, integrity and similar human qualities . (衡量借款人的人品) How to measure 个人贷款的 Character 1 Thus the emphasis is upon past financial behaviour (e.g. paying previous loans on time) (通过之前的金融行为:过去是否按时还款) 2 For current customers this sort of financial history can be easily versified (查看 financial history 3 Other approaches may include contacting the loan applicant employer (but this can cause confidentiality issues). Similarly contacting friends / relatives can be raise a variety of problems. (询问雇主,朋友亲戚小伙伴) 4 Credit rating reports indicating past history when paying bills are frequently used. (信用评级报告) 5 Verification via salary statements, group certificates (statement to the tax authority regarding your tax year income) and drivers lisence (to verify identity) are frequently used. (检查收入证明,税 收证明,驾照) How to measure 公司的 character 1 Credit reporting services (公司的信用评级报告) 2 An opinion from their previous bank (these are often very vague due to fear of litigation, so that they are less useful). (询问和该公司之前合作过的银行) 3 Company information from ASIC (for a fee, but they can be less informative). ASIC 上面关于公司的信息)
4 Local knowledge, suppliers and creditors (but these may not be informative). (公司当地的供应商,债权人) 1.2Capacity Ability to repay the loan (借款人在未来还款的能力)( Financial ability not legal capacity What is financial ability 1 Does the person / company have the cash flow to service the obligations of the loan? (偿还债务部分的现金流是否充足) 2 Is there a reserve in these cash flows if something goes wrong in the future? (当现金流出现问题时,是否有准备金) 3 Making loans on the strength of the security offered to guarantee the loans is not profitable; cash flow and financial capacity has been shown repeatedly over time to be superior. (现金流和财务能力比 loan 是否盈利更重要) Personal Capacity 如何衡量 1 This considers the personal borrowers income (as verified by salary details) and savings (verified by bank statements), assets and liabilities.

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