Difference between revisions of "Use of Funds"
From Open Risk Manual
Wiki admin (talk | contribs) |
Wiki admin (talk | contribs) |
||
| Line 1: | Line 1: | ||
== Definition == | == Definition == | ||
| − | '''Use of Funds''' (also ''Use of Proceeds'') denotes an important component of | + | '''Use of Funds''' (also ''Use of Proceeds'') denotes an important component of [[Credit Risk Analysis]], centered on identifying the intended use of any proceeds (funds) by a borrower. |
It is generally assumed that clear identification of the use of funds in appropriate activities helps reduce the riskyness of lending. | It is generally assumed that clear identification of the use of funds in appropriate activities helps reduce the riskyness of lending. | ||
Latest revision as of 16:39, 23 October 2021
Definition
Use of Funds (also Use of Proceeds) denotes an important component of Credit Risk Analysis, centered on identifying the intended use of any proceeds (funds) by a borrower.
It is generally assumed that clear identification of the use of funds in appropriate activities helps reduce the riskyness of lending.
