Bank Lending Practices
For this phase of the course project, you will conduct additional research for the bank you chose as the subject of your project. Write the next section of your risk management plan in which you discuss individual versus commercial lending practices, risk measurement techniques, and benefits of transfer credit risk.
In this paper, please address the following questions:
- How would you describe the individual and commercial lending practices at the bank?
- How would you measure credit risk at the bank? Be sure to discuss techniques for measuring individual credit products and commercial credit products.
- How would the bank benefit from transfer of credit risk?
- What changes would you recommend in the bank’s lending practices?
- Paper should be 2 pages full length
- The Bank is Wells Fargo
Requirements
Review the APA Citation Online Guide for assistance with citing sources using APA format.
……………….Answer Preview…………….
The bank follows will first determine the credit-worthiness of the individual it intends to lend money to. In order to do this, the bank first checks the customer’s income. The income must show the customer has the ability to repay the loan over the specified period. The bank also checks the credit records of the customer to access whether the customer has been consistent in repaying previous loans lent by the bank. When lending money for commercial purposes, the bank assigns relationship managers……
APA
628 words
