Money · RATIOXA GLOSSARY

Credit standard

A bank’s internal criteria for approving loans.

01

Simple definition

A bank’s internal criteria for approving loans.

02

Why it matters

This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.

03

Worked example

Tighter standards may raise requirements but do not determine an individual case.