Guide To Credit Management Programs

The purpose of a credit guarantee is to prevent unpredictable factors which make it impossible to settle the credit acquired by the debtor. The Central Bank requires that financial institutions that work with the granting of credit demand sufficient guarantees to ensure the return on capital.

Sensitivity analysis conducted as part of the credit management programs is a very important phase in the process of analyzing the granting of credit. At this stage, the loan officer or financial analyst will monitor the macroeconomic situation in order to predict situations that may increase the risk level of the transaction.

Santos (2006) cites as an example the monitoring of interest rates. The increase in them can trigger the reduction in the level of economic activity or even lead to recession, reducing the generation capacity and retention of cash flows. Thus, jeopardizing the repayment capacity of financial commitments.