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The operation of private commercial banks in the modern economy is very important to the functioning of the modern financial system. They do this by initiating credit programs in the form of loans and investments, which allows them to bring into our midst the component of the total money supply that is viewed as being of the utmost relevance. The purpose of this study is to determine the significance of bank policies and procedures, in addition to the challenges that these institutions faced during the course of their lending operations at private commercial banks located in the four (4) communities that make up Region 02 in the Philippines. This study's objective is to determine the significance of bank policies and procedures, in addition to the challenges that these institutions faced during the course of their lending operations. In other words, the purpose of the study is to provide a solution to the question, "What difficulties did these institutions encounter while carrying out their lending operations?" According to the findings of this study, lending procedures enable financial institutions to more precisely evaluate the potential downsides of providing borrowers with credit. It enables the bank to evaluate the creditworthiness of the consumers, which in turn decreases the risk that the customers will be unable to repay the loans they have taken out. Having transparent loan procedures is good for both the borrower and the lending institution. This is because it makes it easier to comprehend the circumstances of the loan, such as the interest rate and the repayment schedule. As a consequence of this clarity, the borrower is able to create precise plans, which guarantees that the transaction will be transparent.

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Financial Law
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Isabela State University, Euchague Campus


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