Credit analysis based on parametar and European banking

Abstract

The subject of this research is to define the methodology for credit analysis and assessment of the degree of credit risk. By researching the subject, we point out the process of the loan application, the margins of acceptable and unacceptable risks. The degree of credit risk by the bank is the result of its preferences for liquidity and profitability. We present the results of financial analysis on a specific company in European bank trough methodology research framework which must be viewed in a comparative context in which we determine the position of companies in a group of related companies, in the sector and branch which belongs to the borrower. Additional caution is required in the use of financial statements refering to their reliability and verification by an independent audit. By this research we point out the process of the loan application procedure trough analysis of financial statements in order to relevantly assess the credit worthiness of users.

Keywords

• credit
• credit analysis
• credit risk
• credit process
• credit credit capabilities