2 About Economic Dependency Analysis
This topic describes about the Economic Dependency Analysis stage.
Economic Dependency Analysis is the process of analyzing customer’s dependencies on various parameters that might impact the customer’s ability to service loans, meet conditions or adhere to the general covenants set by the bank. Analyzing the economic dependency of the customer helps the bankers in understanding how the cash flow or the overall financial or trading position of the customer will change in case of any variation in the mentioned parameters.
The various parameters include:
- Loan Account Conduct
- Working Capital Account Conduct
- Debtors
- Creditors
- Top Customers
- Top Suppliers
- Country Exposure
- Currency Exposure
- Shareholders
- Bankers
- Guarantors
- Insurers
- Management Team
- Directors
- Contractors
- Advisors
The Economic Dependency Analysis process has the following stages that are required to be performed by the authorized users in bank:
- Enrich and Analyze
- Review
- Recommendation
Refer Enrichment, Review, and Recommendation chapters for information on performing Enrichment and Approval tasks.