Credit monitoring strategies in a bank take place in two stages namely the pre-sanction stage and post-sanction stage of loans and advances. Pre-sanction process involves the identification of the borrower, the purpose of the loan, quantum of loan, period of loan, source of repayment, security for advance, profitability, pre-sanction unit inspection, appraisal of credit proposal,…
LIBOR is the acronym for London Interbank Offered Rate. The ‘LIBOR’ serves as the key benchmark rate in calculating interest rates on various loans across the world. Each morning before 11 a.m. (GMT), the sets of major banks that have a significant presence in the London market are asked the rate at which they could…
MIBOR stands acronym for ‘Mumbai Inter- bank Outright Rate’, the benchmark of the Indian call money market. It is the rate at which banks borrow unsecured funds from one another in the inter bank market. The bid rate on how much interest banks would pay to borrow money on a short-term basis from other institutions…