This exerts further pressure on the bank's standalone credit assessment, given the difficulties to rollover market maturities and the lack of funding alternatives besides central bank funding or deleveraging.
Mortgage brokers expect banks to keep tightening lending to investors through higher interest rates and tougher credit assessments of applicants' capacity to pay off their loans.
During the period of refinancing, the factor handles everything from account administration to routine transactions, collections and even credit assessment.
Macro-economic dynamics have been a major contributor; however, inadequate credit assessments and monitoring are also partially responsible for this situation.
This includes short-, medium- and long-term export credit insurance, investment insurance, bond and guarantee business, debt and capital retrieval business and credit assessment business.
Profitability also declined, with the net interest income declining by 27% year-on-year, which makes the bank's standalone profile no longer consistent with a baa2 standalone credit assessment.
