The 3P's of credit

When I was working in the bank, the branch sent me for a 3-month training and observation tour at the Home Office. I cannot forget what our Vice President for Credit said: “Every banker knows that there are 3 C's of credit; but now I tell you of the 3 P's of credit. The first P stands for politicians; the second is for policemen, and the third stands for parientes . These are the three types of borrowers you should be wary in lending bank money.

Of course, there are exceptions. For example, our politician borrower in the preceding story paid back.”

Bank Definitions

Banker – A fellow who lends you an umbrella when the sun is brightly shining, but demands to get it back promptly when it starts to rain.

Joint Account – An account where the husband deposits and the wife withdraws.

Overdraft – When the wife withdraws and the husband did not deposit.

Current Account – Total unpaid bill for electricity consumed by the bank.

Savings Account – A type of deposit so called because it gives big savings to the bank due to its very low interest feature.

Time Deposit – Another type of deposit with a special feature that the bank can ask for “time” or “time out” just in case it cannot immediately pay back the money.

Demand Loan – A type of loan that will jolt you and raise your blood pressure once the bank demands payment because it has to be paid in full.

Time Loan – As the term suggests, you can take your time in paying it back.

Housing Loan – A loan granted by the bank to house your family, relatives and in-laws.