Evaluate the credit risk analysis, International Economics

Assignment Help:

Question :

Banks find it more profitable to lend money as the margin on lending is much higher than any other banking activity. However, banks have to assess credit risks and take necessary measures to reduce and mitigate their risks. Banks usually take collaterals such as floating charges, fixed charges and personal guarantees to secure their exposures.

(i) Clearly explain the following terms used in relation to credit risk analysis:

(a) Expected Loss
(b) Credit risk drivers;
(c) Credit scoring and artificial intelligence models

(ii) Identify the three main pillars of Basel II and discuss how Basel II is expected to ameliorate bank risks management.


Related Discussions:- Evaluate the credit risk analysis

International trade, INTERNATIONAL TRADE can be understood as follows B...

INTERNATIONAL TRADE can be understood as follows By the international trade, we signify the exchange of goods and services between different countries. For any individual count

International trade, #question.what is the baises for international trade.

#question.what is the baises for international trade.

Alternative theories of international trade, what are the alternative theo...

what are the alternative theories of international trade?

What is the fisher effect?provide an example, What is the Fisher Effect?  P...

What is the Fisher Effect?  Provide an example. Answer: All moreover equal a rise in a country's expected inflation rate will ultimately cause an equal rise in the interest rat

Explain why under the gold standard a perpetual surplus, Q. Explain why und...

Q. Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible. Answer: Since specie inflows drive up domestic prices and restore symmetry in

Economic growth, Q. It is impossible for economic growth in a small countr...

Q. It is impossible for economic growth in a small country to lower that country's economic welfare, regardless of the bias of the growth. Explain. Answer: This is a true st

#title.circular flow of income of an open economy., illustrate the circular...

illustrate the circular flow of income of an open economy and explain the effects of various injections and withdrawal in the circular flow?

Expansion of international trade, Q. Even though it is very clear in the c...

Q. Even though it is very clear in the context of the Specific Factors model that an expansion of international trade will make losers as well as winners, economists still claim t

Balance of payments is always balanced, Q. "The balance of payments is alwa...

Q. "The balance of payments is always balanced." Discuss. Answer: True each international transaction automatically enters the balance of payments twice once as a debit and o

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd