Capital Adequacy Ratio : Capital adequacy ratio is the ratio which determines the capacity of the bank in terms of meeting the time liabilities and other risks such as credit risk, operational risk, etc.
Gross Debt Service Ratio : A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment about whether a potential borrower is already in too much debt. Receiving a ratio of less than 30% means that the potential borrower has an acceptable level of debt.
Customer Credit: This is credit history of the respective customer in the bank. While customer approaches the bank, the bank needs to check the required details or the past track performance of the customer.
It is global financial services
Headquarter in London U.S
8000 offices in 80 countries
Primary listing on London stock exchange
Secondary listing: Hong Kong stock exchange,NYSE,
Formulating high level credit policies
Issuing lending guidelines to HSBC
Controlling exposure to certain industries
Reporting to senior executives on loan portfolio
Reviewing efficiency and effectiveness of credit approval process.
Regular audits of credit process by internal audit.