The steps in the process of commercial bank lending in order are
A) borrower bank search, credit analysis, borrower-bank negotiation, bank funding.
B) borrower bank search, borrower-bank negotiation, credit analysis, bank funding.
C) credit analysis, borrower bank search, borrower-bank negotiation, bank funding.
D) borrower-bank negotiation, borrower bank search, credit analysis, bank funding.

Question

Quizplus · Accepted Answer

The correct sequence for the process of commercial bank lending starts with a borrower searching for a bank, followed by the bank conducting a credit analysis of the borrower. After the credit analysis, the borrower and the bank negotiate the terms of the loan. Finally, once the terms are agreed upon, the bank provides the funding.

The Steps in the Process of Commercial Bank Lending in Order