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How Innovative Trade Finance Structures Can Remedy the Bad Loan Portfolios of Banks

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Your social media profile says a lot about you. Who you're friends with, where you work or go to school, and there might be a picture or two you don't want the world to see.

If we as people want to make it as professionals then we need to monitor what goes into our profile and weed out unprofessional material, which could potentially damage that reputation.

The same is true for financial institutions. They need to pride themselves with a friendly profile to represent the values of the institution. We have Facebook profiles and banks have loan portfolios.

A financial institution is only as strong as its profitability, capital strength, and asset quality. 

However, poorly managed portfolios can have negative effects for the bank's image and credit worthiness.

This guide will help you understand a new remedy to bad loan portfolios.


What Are Loan Portfolios?

Banks rely in great part on their ability to provide loans to people. Lending is a crucial part of the prosperity of fina…