# Credit factory

- Canonical URL: https://www.gerhardmerk.de/credit-factory
- Post ID: 591282
- Modified: 2023-07-25T20:59:03+00:00
- Language: en

## Definition

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). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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