What is a bank commitment?

Management Dictionary
Corporate and Market Finance

7 vues

With over €2 trillion in outstanding loans, banks remained the primary providers of credit in 2021, according to the Bank of France. Given the sums involved, they place a borrower’s ability to repay their debts at the heart of their concerns. The challenge is indeed to reduce the cost of risk and maintain the highest quality loan portfolio possible. From their perspective, the commitment—the contract by which the client acknowledges their debt and undertakes to repay it—is largely unaffected by risk. It specifies the debtor’s repayment schedule as well as the reciprocal rights and obligations of both parties.

Liens et ressources

http://projet-beer.fr/

Mots clés

bank, commitment, contract, debt

Auteur.e(s)

MAYMO Vincent
Associate Professor
IAE Bordeaux

Institution(s)

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