Corporate lending

How many lending methods of credit institutions serving business activities are there according to Article 27 of Circular 39/2016/TT-NHNN

• 8

• 9

• 10

How many types of business loans According to Article 10 of Circular 39/2016/TT-NHNN

• 1

• 2

• 3

“Loans based on credit limit” means

• Credit institutions determine and agree with customers on a maximum loan balance to be maintained in a certain period of time

• It is the act of having two or more credit institutions jointly grant loans to customers to implement a loan plan or project

• Each time a loan is granted, the credit institution and the customer carry out loan procedures and sign a loan agreement

 What’s the primary risk of corporate lending

• Market risk

• Credit risk

• Operational risk

• Liquidity risk

Which of the following is not a characteristic of corporate lending

•  Given by financial institutions, commonly banks, to companies instead of individuals

• During the revolving loan process, if customers have bad debt at credit institutions, they are not allowed to extend the repayment period as agreed

• The lending process is usually short and simple

Credit institutions allow customers to spend in excess of the amount of money on the customer's payment account to a maximum overdraft level to perform payment services on the payment account” refers to what lending method

•  Service loans

• Syndicated loans

• Lending according to reserve loan limit

• Loans based on overdraft limits on current accounts

In the context of corporate lending, technological disruptions involves

• Increased Competition

• Increased Reliance on Data

• Potential job displacement

• All of the above

Which of the following is NOT a typical way for a bank to mitigate the risk of a corporate loan default?

• Requiring collateral from the borrower

• Offering the loan at a very low interest rate

• Implementing loan covenants that restrict the borrower's financial activities

• Conducting a thorough credit assessment of the borrower's financial health

What is the main advantage of utilizing big data analytics in corporate lending?

• Reduces the workload for loan officers

• Enables a more comprehensive assessment of borrower risk

• Guarantees a successful outcome for every loan

• Eliminates the need for traditional credit scoring methods