Reasons for any change in importance of residential loans

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Reference no: EM13838100 , Length: word count:2000

1. Explain the difference between bank credit risk and bank capital risk?

2. What is the difference between lending to individual borrowers via a residential home mortgage compared to other types of consumer lending?

3. (i) Graph on two separate lines for 2007 to 2014 (1) the residential loans as a percentage of total loans and (2) impaired loans (NPLs)/gross loans. Please include the 4 major Australian banks and Barclays Bank* in the UK.

(ii) Explain the reasons for any change in the importance of residential loans
(iii) Interpret these banks' credit quality over 2006-2014

4. Explain the impact you would expect from Australia's introduction of comprehensive credit reporting (CCR).

Reference no: EM13838100

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