The Quotable Five C's

By Strischek, Dev | The Journal of Lending & Credit Risk Management, April 2000 | Go to article overview

The Quotable Five C's


Strischek, Dev, The Journal of Lending & Credit Risk Management


After lacing his many articles for the Journal with relevant and provocative quotes, Strischek now complements the five C's with quotable statements from individuals inside and outside of banking. These quotes have been selected "for both their educational and entertainment value." So enjoy[ldots]and be educated.

The C's of credit have long served as an analytical training tool. Consideration of character, capacity, capital, conditions, and collateral has been a part of every lender's due diligence, with refinements in definitions being made over the years. [1]

So it's time to give the C's their due, with observations on these factors from within and without the industry. After reading the article, the lender can join in the challenge observed by Dorothy Parker, "I might repeat to myself, slowly and soothingly, a list of quotations beautiful from minds profound; if I can remember any of the damn things."

Character

Character, which can be defined as the complex of mental and ethical traits marking and often individualizing a person, group, or nation, typically ranks first among the five C's in determining creditworthiness. The other C's have their places, but unless the borrower is willing to live up to his promise to repay the debt, the lender is taking a risk at the outset of the credit extension so great that the other C's are unlikely to mitigate. The borrower's willingness to honor obligations reflects the value the borrower puts on reputation, honesty, and integrity. In some cultures, however, character has served as the only "C," and we've seen what can result from that.

Synonyms of Character: decency, dignity, nobility, quality, reputation, worth, honesty, integrity.

Quotations on Character:

Every man has three characters--that which he exhibits, that which he has, and that which he thinks he has.

Alphonse Karr (1808-1890)

The universe seems bankrupt as soon as we begin to discuss the characters of individuals.

Henry David Thoreau (1817-1862)

A man never discloses his own character so closely as when he describes another's.

Jean Paul Richter (1763-1825)

The measure of a man's real character is what he would do if he knew he would never be found out.

Thomas Babington Macaulay (1800-1859)

A rich man has no need of character.

Hebrew proverb

A man's indebtedness is not virtue: his repayment is. Virtue begins when he dedicates himself actively to the job of gratitude.

Ruth Benedict (1887-1948),

The Chrysanthemum and the Sword

The reputation of a man is like his shadow, gigantic when it precedes him, and pygmy in its proportions when it follows.

Talleyrand (1754-1838)

One can survive everything nowadays, except death, and live down anything except a good reputation.

Oscar Wilde (1856-1900),

A Woman of No importance

Capacity

Capacity usually follows character as the second "C." Capacity is the ability of the borrower to operate the business successfully and generate the cash needed to repay obligations as they come due. Capacity is sufficient power, enough strength, and adequate resources to start, maintain, and expand operations as the firm passes through its life cycle.

Synonyms of Capacity: ampleness, sufficiency, room, extent, potential, ability, capability, adequacy, sufficiency, endowment, strength, endurance, perseverance.

Quotations on Capacity:

Sufficiency 's enough for men of sense.

Euripides (480-406 B.C.)

You never know what is enough unless you know what is more than enough.

William Blake,

The Marriage of Heaven and Hell, (1757-1827)

Do what you can, with what you have, where you are.

Theodore Roosevelt (1858-1919)

Make all you can, save all you can, give all you can. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Quotable Five C's
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.