Loans (F.4)

5.69 Definition:

The category loans (F.4) consists of all transactions in loans (AF.4) that is financial assets created when creditors lend funds to debtors, either directly or through brokers, which are either evidenced by non-negotiable documents or not evidenced by documents.

5.70 Generally loans are characterised by the following features:

  1. the conditions governing a loan are either fixed by the financial corporation granting the loan or negotiated by the lender and the borrower directly or through a broker;
  2. the initiative concerning a loan normally lies with the borrower;
  3. a loan is an unconditional debt to the creditor which has to be repaid at maturity and which is interest-bearing.

5.71 Category F.4 may be divided, when relevant, into two sub-categories of financial transactions:

  1. short-term loans (F.41);
  2. long-term loans (F.42).