Definition: is a program and direction of the credit organization's activities in the field of providing loans to enterprises and private individuals. At the heart of the credit, policy is the risk-return ratio of the operations being conducted that is acceptable to the financial institution. Lending policy is an internal document of the bank that determines the main approaches to lending and requirements for borrowers taking into account the current economic situation. Lending policy expresses the philosophy (general approach, concept) of the bank's credit activity, establishes the strategic foundations of credit activity. The policy is a general guide to action in the work of the bank's credit service.
Lending policy in a sentence:
- The lending policy of the bank is determined based on macroeconomic external and microeconomic internal factors.
- The main objective of the lending policy of the bank is to obtain maximum profit with a minimum level of risk.
Synonyms and related words: lending, loan of funds, interest rate, loan agreement