A credit review, also known as account monitoring or account review inquiry, is a periodic assessment of an individual`s or businesses’ credit profile. Businesses and individuals must go through a credit review to become eligible for a loan or to pay for goods and services over an extended period.
A credit review is a useful tool to analyse someone`s ability to repay a debt. It can also expose potential threats about the financial history such as bankruptcy filings and monetary judgements.
Identifying and addressing credit risk entails significant time and resources. Financial institutions must ensure established and internal credit risk rating policies are adhered to while aligning with dynamic regulatory requirements and economic demands.
Many financial institutions experience difficulties in deploying suitable staff and having sufficiently experienced personnel to effectively perform credit reviews internally.
At RSM Malta, we offer services of liquidity and credit reviews as directed by either banks or clients for the restructuring of debt. Our services also include reviews of leveraged transactions as defined by the European Central Bank guidelines.