CASPER acronym for the canons of lending

Discussion in 'CP1' started by Imy, Jan 20, 2022.

  1. Imy

    Imy Member

    Hi, so we covered the canons of lending in my tutorial yesterday for Chapter 26 and I can’t find this in the CMP or Revision notes, does anyone have what section it falls under? Thanks!
     
    Imy, Jan 20, 2022
    #1
  2. Helen Evans

    Helen Evans Ton up Member Staff Member

    Hi Imy thank you for your post. The canons of lending are not explicitly covered in the reading for CP1, but can be useful for answering questions about how to control risk in relation to lending money. So you won't find this material in your course notes, I'd say relates primarily to Chapter 30 on 'Other risk controls'.

    For completeness for others reading this post, the CASPAR acronym stands for:
    C - Character (of the borrower)
    A - Ability (of the borrower to repay)
    S - Security (the borrower can offer)
    P - Purpose (of the loan)
    A - Amount
    R - Repayment (terms)

    I hope this helps and your studies are going well.

    Helen
     
    Helen Evans, Jan 20, 2022
    #2

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