What is the Full Form of CAM in Banking?
The full form of CAM in Banking is Credit Analysis Memorandum. The CAM is the starting point of an officially documented and organized appraisal of the loan proposal. The credit analysis memorandum kick starts a formal process of structuring and packaging a loan request for credit term’s approval. Writing a CAM is the most demanding assignment of credit analysts. With the credit analysis memorandum is difficult to make meaningful decisions on credit requests.
Importance of Credit Analysis Memorandum:
A credit memorandum or the credit memo is given to the customer by a seller that offers goods and services. The memo was issued as a way to reduce the amount that is owed by the customer. The most common type of credit memorandum is the deduction that will be taken from an invoice that was issued previously.
Reasons for Issuing Credit Memorandums:
The credit analysis memorandums are issued for a number of reasons. These reasons involve price disputes, buyer returning goods, or a marketing allowance. The CAM means that the party who made the purchase from the seller will not end up paying completely that was owed at the time of the purchase.
Other Full Form of CAM
- Customer asset management
- Credit appraisal memorandum
- Chartered asset manager
