A term that emerged around 2002 to describe a specialized service provider that reviews the mass of small-sized loan applications and often makes a (preliminary) decision on whether to grant a loan. – Credit factories can operate within a single banking group – such as: Savings banks – but also act across institutions (cross-institutional), then in their own legal form. The aim of the credit factory is to make the processing of small-scale lending business more cost-effective (at considerably lower prices). – Whether lending can be standardized in this way at all, and if so, within what limits, remains a matter of debate. – See call center, loan, small-volume, loan, short-term, loan officer, loan scoring procedure, outsourcing, silo thinking, spin-off, standard loan, transaction bank. – On this outsourcing and its supervisory consequences, see BaFin’s Annual Report 2003, pp. 85 f., ECB Monthly Bulletin of April 2012, pp. 22 ff. (Factors influencing lending to households since 1999; overviews).
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