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What is Credit Evaluation Principles Explained about?

This document discusses the basic principles of credit evaluation that financial institutions follow when granting loans. It outlines seven key principles: liquidity, safety, diversity, stability, profitability, eligibility, and risk management. It then explains each principle in more detail. For example, it states that financial institutions aim to maintain sufficient liquidity to meet depositor withdrawal needs, only grant loans that borrowers can safely repay, diversify their loan portfolios across diffe

Author

Ravindu Gamage

Language

EN