Unprecedented Losses Hit European Banks: Urgent Need for Credit Process Overhaul
The article discusses how banks need to change how they manage credit due to an increase in bankruptcies and defaults. In the past, banks could avoid bad loans easily, but now they need a new approach. Traditional methods like financial ratios and relationship building are no longer enough. The current economic climate has led to more defaults than before, making it crucial for banks to rethink how they assess credit risk.