Credit Standards

Credit Standards

The guidelines a company follows to determine whether a credit applicant is creditworthy.

Credit Standards

The set of standards that a company or bank uses to determine whether to extend a loan or line of credit to an applicant. Credit standards may include having a certain FICO score, recent good credit history, and a certain income.
References in periodicals archive ?
Meanwhile, the central bank said that diffusion index-based results pointed to expectations of overall net tightening of credit standards for household loans in the fourth quarter of 2018 as respondent banks anticipate a deterioration in the liquidity of their portfolio and a decreased deposit base.
Finally, in general, fewer lenders reported easing credit standards in the third quarter despite the decreased mortgage demand and increased competition.
For the current quarter, respondents expect a further rise to plus 16.3, while they also think credit standards will tighten further, the central bank added.
Philippine banks further tightened credit standards for loans to enterprises and households amid perception of stricter financial system regulations, the deterioration of the profile of corporate borrowers, and reduced tolerance for risks.
This team not only publicly endorses credit standards that are the backbone of a credit culture, but also employs these standards when formulating strategies to become a high performance bank."
In a statement, the central bank said, 'The tighter overall credit standards for commercial real estate loans reflected respondent banks' wider loan margins, reduced credit line sizes, stricter collateral requirements and loan covenants, and increased use of interest rate floors.'
BANKING AND CREDIT NEWS-December 24, 2015-Fannie Mae survey finds lenders to ease mortgage credit standards
M2 EQUITYBITES-December 24, 2015-Fannie Mae survey finds lenders to ease mortgage credit standards
The survey indicated a marginal tightening in credit standards vis-a-vis maximum loan-to value (LTV).
The third-quarter survey found most lenders reported no major changes in their credit standards for the prior three months.
Credit standards and terms continued to tightened in Q4/2009, except for the mortgage loans (that have not changed).
The survey involves putting a number of questions to a representative sample of the euro zone's banks regarding their lending activities: credit standards for approving loans; credit terms and conditions; and credit demand and the factors affecting it.