Classified the following assets of Aziz bank under fund- bases lending and non-fund -based lending

i. Currency swaps ii. Letters of credit

ii. Guarantees

iii. Mortgage

iv. Bridge loan

v. Working capital financing

2. Eric Ansah has been a customer of your branch for the past five years. He is married with two children. He has operated a satisfactory account with occasional overdrafts before receipt of his salary. However, for these few moths he has overdrawn his account which is now standing at GHC 12 00.00. His monthly salary is usually GHC 3000.00

He calls to see your manager. At the meeting with him he admitted having some financial difficulties. A check from the banks system shows a monthly standing order of GHC 1000.00: monthly rent payment of GHS 300.00. He is owing a building society an amount of GHC 950.00; school fees areas of GHC 1000.00 to pay and his car, requires repairs likely to cost another GHC 500.00

He asks you to give him a loan of GHC 3,500.00 to enable him to clear his overdraft, mortgage arrears, repairs his car and to pay the other bills. He offers to repay the loan at the rate of GHC 100 per month inclusive of interest.

You are required to:

Evaluate the proposition

Repayment ability