Assessing borrower creditworthiness in microfinance institutions involves a thorough examination of the 5 Cs of credit: character, capacity, capital, collateral, and conditions. Evaluating a borrower's character means diving into their…
Analyzing the credit risk transfer mechanisms of derivatives involves understanding tools like credit default swaps (CDS), collateralized debt obligations (CDOs), and total return swaps (TRS). These derivatives allow for the…
Analyzing industry trends to predict credit risk hinges on understanding how economic conditions, like interest rates and inflation, impact borrowing costs and default probabilities. High inflation and rising interest rates…
Hey there! Addressing operational risks in microfinance credit activities starts with understanding the common challenges, like inadequate internal controls, technological failures, and human resource issues. By recognizing these areas, you…