Lending Limit

Business And Finance – To reduce the potential for business failure as a result of the concentration of provision of funds, banks are required to apply the precautionary principle, al by the spread and diversified portfolio of provision of funds primarily to related parties or parties not related to a certain percentage of bank capital, known as the Legal Credit.

Given the significant relationship exists between the failure of a bank with a concentration of provision of funds, banks are prohibited to provide the supply of funds that resulted VIOLATION Lending Limit. In addition to prohibitions and restrictions on certain percentage of capital, banks are required to also implement a credit risk management is more prudent to related parties as well as borrowers or groups of borrowers who have a large exposure (large exposure).

The main thing in setting Lending Limit is:

1. RELATED PARTY Provision of Funds to set a maximum 10% of bank capital
2. Provision of funds to a borrower who is NOT RELATED PARTIES maximum of 20% of bank capital.
3. Provision of funds to one group that is NOT RELATED PARTIES pemimjam maximum of 25% of bank capital.

Operationally, the bank is influenced also considering external factors, then the provision of funds can be said but it does not violate the maximum limit BEYOND al. if it caused a decrease in bank capital, exchange rate changes and changes in fair value.

Given the role of the national economy, especially as an intermediary institution, then although there may be restrictions in the provision of funds, banks still need to be encouraged to support economic growth through langkah2 channeling funds to the real sector by taking into account the precautionary principle. To that end, the provision of certain funds granted leniency or exception in the application of the Legal Lending Limit, among others: provision of funds to state that its business affects the livelihood of many people, including infrastructure development, provision of funds secured by prime bank and multilateral development agencies, as well as the provision funds to customers of the partnership’s core-plasma. In addition, in line with efforts to consolidate the banking, equity participation to another bank can not be calculated in Lending Limit.

Related items

• 5 best tips to manage your personal finance
• Increased self-Series: Financial Stress
• Unsecured loans for bad credit
• Survive Being a Single Income
• Tips And Tricks Governing Household Finance

Incoming search terms: