11Cs for better credit analysis in Asia

Conditions

Conditions refer both to general economic trends and to special developments in certain
geographic regions or sectors of the economy that might affect the borrower's ability to meet its
obligations.

Some firms perform very poorly during economic downturns, so creditors need to exercise
greater caution when lending to such firms during poor economic periods.

These traditional Cs of credit should be thought of as commandants: Do this, check this, and look
for that. These rules have worked fairly well in the past, but in recent years, bankers have learnt a
few more Cs: Complacency, Carelessness, Communication, Contingencies and Competition. The
five things of bad credit to guard against the lessons learnt from the most recent lending
mistakes.