The purpose of the investment project appraisal of a commercial bank

Meaning of appraisal of investment projects:

- Help investors choose the best investment project.
- Helping state management agencies evaluate the necessity and appropriateness of the project in terms of socio-economic development, capital technology, and environmental pollution.
- Help financiers make accurate decisions about lending or repaying debt.

The purpose of the investment project appraisal of a commercial bank

Investment project appraisal is of particular importance to commercial banks in investment credit activities. One of the characteristics of investment activities is that it takes place for a long time, so it can face many risks, if you want to lend safely, ensure the ability to recover capital and investment interest, decide to lend. The banks investment project is appraised on the basis of.

Appraisal of an investment project will draw exact conclusions about the feasibility, economic efficiency of the investment project, the ability to repay debts, and possible risks to make a good loan decision. refuse.

From the appraisal results, investors can contribute comments, as a basis for determining the loan amount, reasonable debt collection, creating conditions for businesses to do business effectively.

Because of this importance, when conducting project appraisal, it is necessary to:

- Firmly grasp the policy of economic development of the State, branches, localities and relevant legal documents.
- Make sure the production and business situation, the financial situation of the business to make appropriate lending decisions.