Loan Book

A loan book is a collection of all the loans that a financial institution has issued to borrowers. It represents the total value of outstanding loans, including mortgages, personal loans, or business debts. The quality of a loan book reflects the risk of borrower defaults and is important for assessing a lender’s financial health. Managing the loan book involves monitoring repayment performance, assessing credit risk, and ensuring proper provisioning for potential losses. Essentially, it’s the portfolio of loans that the lender has extended, serving as a key indicator of its income-generating potential and stability.