Performance Evaluation of Trust Bank
1. Introduction
The very first credit transaction in history certainly took place hundreds of years ago, before the existence of bank, credit bureaus, or credit departments. As the time passed, financial institutions developed to put funds from savers into the hands of borrowers who used this value to create economic value. Credit contributed to economic growth of countries throughout the world as it makes goods and services available to consumers, businesspersons, and governments.
Although the basic tasks of evaluating risk, extending credit, and collecting payments have not changed, the mechanisms for marketing and conducting credit programs have changed dramatically over the years. Computers using sophisticated credit scoring systems speed up the disbursement and collection of account balances. Credit bureaus maintain vast database of information about borrowers available online through computer networks. Lenders continue to find more ways to offer more credit options to businesses and consumers.
Definition of Credit
In a financial system of any economy, we know, financial surpluses mobilized from surplus economic unit and transferred to the deficit economic unit. In the banking world, the bank acts as an intermediary in between deficit economic unit & surplus economic unit. Bank mobilizes the fund from surplus economic unit as deposit & makes the fund available to the deficit unit. The style of making the fund available to the deficit unit is nothing but creation of credit. Credit is in true sense, making provision of fund by one party to another party under certain terms & conditions
Credit is a contractual agreement, in which a borrower receives something of value at present, with the agreement to repay the lender at some date in the future. One of the basic functions of bank is deposit extraction and credit extension. It helps this kind of organizations to earn around 80% of the total revenue. Managing credit operation, thus, is
The very first credit transaction in history certainly took place hundreds of years ago, before the existence of bank, credit bureaus, or credit departments. As the time passed, financial institutions developed to put funds from savers into the hands of borrowers who used this value to create economic value. Credit contributed to economic growth of countries throughout the world as it makes goods and services available to consumers, businesspersons, and governments.
Although the basic tasks of evaluating risk, extending credit, and collecting payments have not changed, the mechanisms for marketing and conducting credit programs have changed dramatically over the years. Computers using sophisticated credit scoring systems speed up the disbursement and collection of account balances. Credit bureaus maintain vast database of information about borrowers available online through computer networks. Lenders continue to find more ways to offer more credit options to businesses and consumers.
Definition of Credit
In a financial system of any economy, we know, financial surpluses mobilized from surplus economic unit and transferred to the deficit economic unit. In the banking world, the bank acts as an intermediary in between deficit economic unit & surplus economic unit. Bank mobilizes the fund from surplus economic unit as deposit & makes the fund available to the deficit unit. The style of making the fund available to the deficit unit is nothing but creation of credit. Credit is in true sense, making provision of fund by one party to another party under certain terms & conditions
Credit is a contractual agreement, in which a borrower receives something of value at present, with the agreement to repay the lender at some date in the future. One of the basic functions of bank is deposit extraction and credit extension. It helps this kind of organizations to earn around 80% of the total revenue. Managing credit operation, thus, is