Agricultural Lending

Ongoing Monitoring

Ongoing monitoring is a critically important component of the vigilance necessary to ensure safe and sound agricultural lending. This requires not only remaining abreast of the borrower’s operations, but also independently keeping up with market events that may affect the borrower. Naturally, a bank should intensify its inspections and other monitoring when there is reason to believe that a borrower’s financial condition or the pledged collateral may be deteriorating.

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