SECURITIES: THE USAGE TO A LENDINGBANKER

Abstract

This paper researched into why provision of collateral security by a
bank customer is not a 100% guarantee that facilities sought for would be
granted. The prerequisite for granting facilities includes: Good Characterintegrity, strong financial Capacity, repayment proposal, the purpose of the
loan, the Ratio/Proportion of the loan/facilities sought-for to that of the
security offered. The lending banker should also consider: relevant 
accounting ratios. The real security is the integrity of the borrower; lending 
proposition must be so good that the question of security becomes secondary.