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Macro means large as in "The Economy as a whole" and credit analysis means the ability of institutions and prople overall to get credit, to honor their commitment to pay back in a timely manner and the extent to which current and expected returns are positive or negative to present economy and future growth of the economy. Sort of intuitive answer.
With easily available credit, people were able by many things that were beyond their means. With so much money being spent on credit, the economy boomed.
The growth of banking industry is closely interlinked with the growth in the economy. Slowdown in economy in the past few years meant lower credit offtake. With lower demand for credit, banks had no option but to invest in low yielding Government securities (G-sec). However with the recent recovery in economy the credit offtake is likey to pick-up and pick-up in credit offtake means deploying funds to the commercial sector and earning a higher return than G-sec. Recovery in the select sectors, like steel, textile and capital goods which have high credit consumption, has lead to pick-up in credit offtake. This clearly means a good topline growth for the banks.
Loan growth refers to the increase in the total amount of loans that a financial institution, such as a bank, extends to borrowers over a specific period. This growth can be measured in terms of the dollar amount or percentage increase in the loan portfolio. Factors influencing loan growth include economic conditions, interest rates, and consumer demand for credit. Healthy loan growth is often seen as a sign of a thriving economy and can contribute to a bank's profitability.
Several factors contribute to determining a person's credit score, including their payment history, amount of debt, length of credit history, types of credit used, and new credit inquiries. These factors help lenders assess a person's creditworthiness and ability to repay loans.
People contribute to the supply of credit in an economy by offering loans to consumers. These would be banks, credit unions, payday loan companies, etc. Consumers contribute to the supply of credit by borrowing money and paying interest, sometimes at very high interest rates.
There are only three factors that constitute and contribute to economic growth: Labor, Capital, Technology.
Business enterprises contribute to economic growth by providing employment opportunities. This allows for more financial success and more money to flow into the economy.
Business enterprises contribute to economic growth by providing employment opportunities. This allows for more financial success and more money to flow into the economy.
Bank loans contribute to the growth and stability of a nation's economy by providing businesses and individuals with the necessary funds to invest in projects, expand operations, and stimulate economic activity. This increased spending leads to job creation, higher production levels, and overall economic growth. Additionally, the availability of credit helps to smooth out economic fluctuations and maintain stability by providing a financial cushion during times of economic downturn.
growth in capital per hour accompanied by technological change
Their stockholders provided capital to build factories and buy equipment
I need this answer too :(
By offering loans, saving money, or, in some cases, investing.
Macro means large as in "The Economy as a whole" and credit analysis means the ability of institutions and prople overall to get credit, to honor their commitment to pay back in a timely manner and the extent to which current and expected returns are positive or negative to present economy and future growth of the economy. Sort of intuitive answer.
A higher national income reflects an increase in demand from the country itself and exports to outside countries. This contributes to the growth of the economy by increasing employment and wages to meet these demands.
The invention of credit cards