DEFINITION of 'country border' Information:
The term "country of a limit" belongs to cumulative border which the bank establishes all borrowers in this foreign country. Country borders, as a rule, concern to all borrowers, irrespective of, whether public they or private, separate or established. They also treat all types of loan, including mortgages, loans to the commercial enterprise and the line of the credit, personal loans, the established credits and any other forms of loan. Solvency of the borrower and unit of the included currency are also not important for this restriction.
2019 - Country border
Country border, Information - 2019
DESTRUCTION of 'country border' Information:
Limits of the country are set by banks as means of restriction of their risk of granting , having limited the sum of money which the bank lent to borrowers in any this country. Similar to versatile development of a briefcase of a stock, banks use country borders versatily to develop their total amounts of receivables and lower risk.
The criteria used to set country limits
Many factors are used to define a border of the country of this country. National political stability represents limit interest because political excitement in the foreign country can lead to non-payment of the loan, irrespective of stability of the personal or established borrower. Even in politically stable countries, the political climate needs to be considered, setting a country limit because the national political climate has strong influence on the financial stability and the principles of economic policy.
Other factors which the bank could consider, setting a country limit, include national economic force; the country with strong economy can be the candidate for higher border of the country as borrowers there, more possibly, will be able to compensate the debts. However, if the country has an unrestrained inflation and weak economy, a country border, probably, has to be established below to give compensation for the credit risk stated by borrowers there. Besides, banks consider the regulating environment in the country, setting country limits; the national government can try to use instructions to stimulate higher borders of the country from the banks working within her borders. Some banks also prefer to work in the countries with smaller number of instructions and smaller number of government supervision. If the bank works in many countries, it can lift country borders in those countries which he finds most easy and the least dangerous to work in, lowering country borders in those he considers dangerous or difficult to work century.
Borders of the country and certain borrowers
While borders of the country dictate, how many money the bank is ready to provide to borrowers in this country, they don't mean that borrowers in that country aren't exposed to careful research before they are awarded by the loan. The personal and established borrowers are exposed to solvency checks, and banks will usually try to choose borrowers with low risk, irrespective of any borders of the country in a place.
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