Country is also an important parameter used by the banks in cross border lending. Here the country’s political system, legal system, laws and regulations are closely verified before providing loan to companies operating in the country. Political stability and proper legal system are very much important parameters to boost the confidence among the cross border lenders. Banks will not be willing to provide loans to the foreign companies if the government is politically unstable, legal system is not suitable and the government policies do not support industrial growth and foreign investment