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The Importance Of Credit Relations And Banking Services For Recovery Of Outstanding Loans

Author

Listed:
  • Medar Lucian-Ion

    (Constantin Brancusi University, Romania)

Abstract

In the credit relations, on the current monetary exchange value against a future monetary values, it take into account the source cost and all amounts that are added to the price formation. The credit price, paid by the customers, cover all the risks caused by inflation and other factors that eroding bank capital. In banking flows credit relations are the support of exchange a current values against a future monetary values. Banking businesses have a specific price called interest or fee. By the price of credit, which is payable by the customer, bank shall cover all risks arising from inflation and other factors that eroded bank capital.

Suggested Citation

  • Medar Lucian-Ion, 2011. "The Importance Of Credit Relations And Banking Services For Recovery Of Outstanding Loans," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 63-70, May.
  • Handle: RePEc:cbu:jrnlec:y:2011:v:2:p:63-70
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