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What steps will you take to ensure that your customers do not exceed their credit limit?

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Question added by Mohamedaslam Mohamed Abba , Bursar/Accountant , Sheikh Zayed Children Welfare centre
Date Posted: 2014/07/09
KARKALA MADHUKAR PRABHU
by KARKALA MADHUKAR PRABHU , UNIT HEAD CREDIT RISK , BBK

Obviously, each counterparty has a credit limit for each trade finance product which is set in the core banking system. However, apart from this, a Bank would have limits for each country, geography, commodity, sector etc. Contractually, the Bank has to build-in these factors so that it undertakes those transactions which it is comfortable with.

 

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