8/3/2019 Aspecte Gen Credit

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http://www.scribd.com/doc/50812375/Aspecte-Generale-Privind-Creditarea-Bancara

general aspects

In order to understand the importance of the credit activity, it is very important to define what does it represent.Etymologically, the credit concept comes from the Latin creditum, which means to trust, trustful. In practice,

this trust can be perceived in the relationship between the creditor and the debtor, with the meaning that the last

one should present certain creditworthiness, so he could generate the creditors trust.

In the Republic of Moldova, the definition of credit is given in the Law of Financial Institutions No. 550-XIII /

21.07.1995 of the Republic of Moldova, art. 3: Credit means any commitment to disburse a sum of money in

exchange for a right to repayment of the amount disbursed and to payment of interest or other charges on such

amount, any extension of the due date of a debt, any guarantee issued, and any commitment to acquire a debt

security or other right to payment of a sum of money.

In order to fulfill the role and functions of the Credit system within a economy, to value at maximum the

advantages and to diminish the disadvantages as much as it is possible, we can conclude that the Credit Systemmust contain:

- The institutional base, which reflects the range of institutions and organizations specialized in the domainof credit, with a huge retsea expanded throughout the territory of the country, and also relationship of

correspondence with similar institutions from abroad. The activity of the institutional range, should be

organized, controlled and supervised by certain commissions/institutions organized at a state level, with

the goal of minimizing the risks.

- The normative-juridical base, which reflects the totality of regulations (laws, decisions, regulations,instructions, norms, etc.) which control the activity of credit institutions within a country. The juridical

base should be sufficiently flexible in order to give opportunities for the affirmation of free initiative of

the credit institutions, but at the same time, to be strict, so it could raise the trust of the economic agents

and limit the risks during the credit operations.

The Credit elements.

For the understanding of bank credit principles, the functions and characteristics of credit, it is necessary to

present the elements that are included in the credit relationship:

1) Participants2) Promise of reimbursement3) Maturity4) Interest rate to be paid (credit price)

Strongly related, and resulting from the promise of reimbursement appear to be the credit guarantee

arrangements, which constitute the legal guarantee of their reimbursement. Depending on the nature of the

elements that represent the guarantee object, we can distinguish the REAL and PERSONAL guarantee.