- The loan portfolio is considered as the largest income-generating asset of a lending institution.
- Like any other asset, it has inherent RISKS!
- One of the biggest risks faced by the bank is non-repayment by clients or delinquency. This risk in the bank portfolio changes as loans are disbursed.
- Problems with loan delinquency affect not only loan clients but the whole institution and community as well.
- However, the bank is ultimately responsible for delinquency.
- Understand the basic concepts of zero tolerance and delinquency
- Learn how to measure delinquency
- Know the costs and causes associated with delinquency