Loan covenants requirements


Please assist in answering the following questions.

Should management only be concerned with producing returns for their investors or do they need to consider the needs of other stakeholders?

Before the financial crisis I do not think that the loan officers paid close attention to quarterly financials. Currently, it probably depends on what line of business the customer is in. I would assume as long as the quarterly statements are within the loan covenants requirements the loan officer would not be overly concerned. Are the quarterly statements compiled?

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Accounting Basics: Loan covenants requirements
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