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Vertrauenskredit

English translation: credit in good faith

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Vertrauenskredit
English translation:credit in good faith
Entered by: Carolyn Brice
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10:14 Sep 6, 2006
German to English translations [PRO]
Bus/Financial - Finance (general) / Banker's reference
German term or phrase: Vertrauenskredit
- wir gewahren Vertrauenskredit
- das Konto weist sehr gute Umsatze auf
- der Grundbesitz ist durch uns derzeit nicht belastet
- uber Ruf und personliche Lebensfuhrung der Geschaftsfuhrung ist uns nichts Nachteiliges bekannt
- wir konnten umsichtige Betriebsfiihrung beobachten
- die Zahlungsweise erscheint geordnet; die bei uns vorgekommenen Verpflichtungen wurden punktlich erfuellt


This is a banker's reference letter. I'm having trouble finding the equivalent for this term. (Sorry for any spelling, it's been converted from pdf).

TIA
Carolyn Brice
Australia
Local time: 03:58
credit in good faith
Explanation:
Credit in good faith, i.e. based for instance on a company's reputation and perhaps even on an unqualified audit opinion. I have not found an exact equivalent of Vertrauenskredit in English. However, I think this paraphrase comes quite close. Perhaps a little background will help put this term in perspective. Because Basel I was considered too risk-insensitive, the Basel II accord has significantly increased the capital reserve and disclosure requirements (vis-a-vis risk) of credit institutions so that they are now required to scrutinize a company's management, as well as its current and future financial and competetive situation, much more closely than ever before. Simple "credit in good faith" is essentially a thing of the past for small- and medium-sized enterprises; i.e. mere trust in and reliance on the balance sheet and current operating figures is not enough. Anyone offering such Vertrauenskredit would certainly have to compensate "blind faith" with a higher interest rate (and fulfill Basel II capital reserve and disclosure requirements pertaining to its increased operating risk). Certain clues in the text hint at the moderate to low assurance of the bank's information on the loan applicant. The fact that they "aren't aware" of anything adverse or unfavorable concerning the management is not as strong a positive assertion of their confidence in the management's ability to lead the company. Also, the method of payment merely "appears" to be appropriate and in order. It certainly sounds as if they are merely relying on "good faith" and haven't thoroughly researched the client's ability to make payments now and in the future.
Selected response from:

Michael Engley
United States
Local time: 13:58
Grading comment
Thanks for all the extra info, certainly makes it more clear!
4 KudoZ points were awarded for this answer

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Summary of answers provided
4credit in good faith
Michael Engley
3 +1credit/loan(s) based on trust or good standing
Camilla Seifert


  

Answers


14 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
credit/loan(s) based on trust or good standing


Explanation:
It sounds like an explanation given why a bank has - or is about to - grant credit/a loan on something other than the normal securities, i.e. on somebody's good reputation. The sentence could then be something like: Credit (the loan) was granted based on trust / good standing.

Camilla Seifert
South Africa
Local time: 19:58
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 75

Peer comments on this answer (and responses from the answerer)
agree  Ingeborg Gowans
26 mins
Login to enter a peer comment (or grade)

6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
credit in good faith


Explanation:
Credit in good faith, i.e. based for instance on a company's reputation and perhaps even on an unqualified audit opinion. I have not found an exact equivalent of Vertrauenskredit in English. However, I think this paraphrase comes quite close. Perhaps a little background will help put this term in perspective. Because Basel I was considered too risk-insensitive, the Basel II accord has significantly increased the capital reserve and disclosure requirements (vis-a-vis risk) of credit institutions so that they are now required to scrutinize a company's management, as well as its current and future financial and competetive situation, much more closely than ever before. Simple "credit in good faith" is essentially a thing of the past for small- and medium-sized enterprises; i.e. mere trust in and reliance on the balance sheet and current operating figures is not enough. Anyone offering such Vertrauenskredit would certainly have to compensate "blind faith" with a higher interest rate (and fulfill Basel II capital reserve and disclosure requirements pertaining to its increased operating risk). Certain clues in the text hint at the moderate to low assurance of the bank's information on the loan applicant. The fact that they "aren't aware" of anything adverse or unfavorable concerning the management is not as strong a positive assertion of their confidence in the management's ability to lead the company. Also, the method of payment merely "appears" to be appropriate and in order. It certainly sounds as if they are merely relying on "good faith" and haven't thoroughly researched the client's ability to make payments now and in the future.

Michael Engley
United States
Local time: 13:58
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 63
Grading comment
Thanks for all the extra info, certainly makes it more clear!
Login to enter a peer comment (or grade)




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