摘要：Bank credit channeling is not entirely returned at the maturity of credit. This phenomenon causes bad debts. The occurrence of bad debts, among others, comes from debtors who do not have good faith. Many debtors, deliberately with all efforts, try to get credits. However, after they obtain the credits, they use the credits for the interests that cannot be accounted. In some cases, debtors even ran away before the maturity of credit. This raises the issue of how banks apply the precautionary principle of dealing with unqualified debtors, the debtors with bad faiths. To anticipate bad-faith debtors, it is mandatory for banks to apply the precautionary principles, known as the 5C principles and to apply risk management in order to avoid bad debts before credit agreement is approved. After credits are channeled, banks routinely supervise the development of credits to avoid deviations from the terms of agreement. In the event of bad debt, and bank solved it by executing the object of guarantee, the availability of material security is one of the factors that determines the properness of credit channeling. It should be performed with the binding of a formal juridical guarantee based on the legislations on guarantees.
