THE ADVANTAGE OF GUARANTEE BY THE INSURANCE COMPANY IN EXPANDING THE POPULATION’S ACCESS TO CREDIT
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Guaranty is one of the important services provided by insurance companies, which plays an important role in protecting borrowers from financial risks for commercial banks. A guaranty by an insurance companies creates additional confidence for banks in fullfilling the borrower’s obligations. This process, in turn, expands credit availability, as banks reduce risk through colletarel and become more willing to accept borrowers. At the same time, in order for the surety of insurance companies to be covered by insurance companies, legal entities and individuals must have presented the insurance premium.
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Guaranty is one of the important services provided by insurance companies, which plays an important role in protecting borrowers from financial risks for commercial banks. A guaranty by an insurance companies creates additional confidence for banks in fullfilling the borrower’s obligations. This process, in turn, expands credit availability, as banks reduce risk through colletarel and become more willing to accept borrowers. At the same time, in order for the surety of insurance companies to be covered by insurance companies, legal entities and individuals must have presented the insurance premium.
KEY WORDS: guaranty, insurance companies, credit, risks, trust, financial security, bank guarantees.