(1) Established companies tend to grow their panel of banks over time to need its expanding banking needs. Diversifying the banking panel across countries and region is important. The banking panel should have local banks, international banks and banks with specific specialisation. During periods of financial crisis, such as the Asian Financial Crisis, banks are known to have left entire markets and even region. Companies with few banks supporting them may then experience severe financial stress. Is this statement TRUE or FALSE? (2) "You must have sufficient skin in the game" in that companies must have sufficient equity before banks would lend to them. Besides the company's profitability, dividend policy of the company is also key to the bank's credit decision. Is this statement TRUE or FALSE? True False
(1) Established companies tend to grow their panel of banks over time to need its expanding banking needs. Diversifying the banking panel across countries and region is important. The banking panel should have local banks, international banks and banks with specific specialisation. During periods of financial crisis, such as the Asian Financial Crisis, banks are known to have left entire markets and even region. Companies with few banks supporting them may then experience severe financial stress.
Is this statement TRUE or FALSE?
(2) "You must have sufficient skin in the game" in that companies must have sufficient equity before banks would lend to them. Besides the company's profitability, dividend policy of the company is also key to the bank's credit decision.
Is this statement TRUE or FALSE? True False
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