Filter by Categories
Accounting
Banking

Banking




Ability To Pay


In general, it is the capacity of an individual or entity to meet future obligations from earnings or income. In banking, it refers to a borrower’s capacity to provide for a loan from disposable income (by making principal and interest payments using one’s own resources). Lenders usually analyze the ability of a credit applicant to repay the loan along with interest. To that end, they carefully examine an applicant’s current income and expected future earnings (such as salary and other sources of disposable income for individuals and cash flows for businesses).



ABC
Banking is an integral part of the modern financial system and plays an important role in an economy. It basically involves the so-called intermediation (e.g., ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*