Regulatory Controls for Assessing Customer Creditworthiness
Banks must apply standardized criteria to assess borrower creditworthiness before approving loans or credit facilities. This process reduces default risks, enhances portfolio quality, and ensures fair treatment of customers in line with CBI supervisory expectations.
Creditworthiness assessment combines financial analysis, documentation verification, and risk evaluation of the borrower’s business or income.
Requirements for applicants (borrowers):
- Financial statements or income documentation
- Bank statements and credit history
- Collateral or guarantees (if required)
- Corporate documents (for business borrowers)
- Identification and KYC documents
CBI compliance expectations
- Apply standardized credit evaluation criteria
- Determine repayment capacity and credit limits
- Verify documentation and collateral
- Perform periodic credit reviews
- Record credit decisions for audit and supervision
- Report credit data to relevant bureaus when applicable
How Etihad Can Assist
Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.