Question

Assume, as the loan officer of a commercial bank, that one of your customers has asked for a commercial letter of credit to enable his firm to import a supply of well-known french wines. this customer has a long record of commercial success yet has large outstanding debts to other creditors. in what way might you accommodate the customer and at the same time protect your bank? i would review his bank accounts, payment history compared to his o

Answer 1

first of all I'll check all his assets and wealth what he own and what are his debts instead of being a good businessman if he have outstanding debts and he is enabled to give any security to bank so I won't take risk to give him loan as he already have outstanding loans ...or if u give any security to bank so bank being an officer I'll check whether the security is genuine or not then I'll sanction his loan ..