Abstract:
A banker is a dealer in credit and money. Borrowing and lending are two components of the banking sector. By collecting deposits from numerous customers and then lending the vast majority of the accumulated pool of cash to those looking to borrow, the bank serves as a financial mediator between savers (lenders) and investors (borrowers). A lending philosophy, a scientific and methodical approach, the upgrading of skills in loan appraisal, the assessment of borrowers' credit needs, proper and sufficient documentation to ensure the safety and security of funds, a mechanism for monitoring and controlling loans and advances after the funds have been disbursed, as well as carefully planned nursing and practical recovery proceedings, where necessary, are all necessary for the successful deployment of bank credit. It has been asserted that a bank never originates a bad loan; rather, a bad loan materializes after it has already originated. The account of a borrower who has broken his responsibilities is referred to as a sticky account. For banks, recovering past-due sums on a growing number of sticky accounts are turning into a stressful situation. When the likelihood of return is unknown and keeping the account open is deemed unfeasible, these advances would be cancelled.
