NH Nonghyup Bank said on Jan. 26 it is stepping up support for productive finance by introducing a newly developed credit assessment model for acquisition financing. It aims to ensure smooth funding for companies with growth potential during corporate restructuring and industrial reorganisation.

The key to the new model is a detailed analysis centred on the target company’s future cash-generating ability and business growth potential. The bank plans to move away from assessment methods that focused on collateral or past performance and to supply capital to companies with strong growth potential and innovation, in line with the government’s productive finance goals.

The model is designed as a group standard model used in the same way by all NH Nonghyup Financial Group affiliates. This will allow affiliates such as the bank and the securities unit to apply the same assessment standards when jointly arranging acquisition financing, and is expected to significantly improve the speed and efficiency of decision-making.

Yang Jae-young (양재영), deputy head of the risk management division at NH Nonghyup Bank, said the in-house model goes beyond simple risk management to help capital be deployed effectively to corporate and industrial restructuring sites. He said the bank will continue to take the lead in supporting productive finance by strengthening economic vitality based on precise credit assessment.