Which of the following are the components that are required to be estimated for credit risk quantification?
1. Probability of default
2. Expected Loss
3. Exposure at default
4. Loss Given default
The expected loss is the amount a lender might lose by lending to a borrower. The components of expected loss are: Probability of default (or PD) is the likelihood that a borrower would not be able (or would not be willing) to repay their debt in full or on time. In other words, it is an estimate of the likelihood that the borrower would default. Usually, PD refers to a particular time horizon. Loss given default (or LGD) is the share of an asset that is lost if a borrower defaults. It is the proportion of the total exposure that cannot be recovered by the lender once a default has occurred. Exposure at default (or EAD) is the total value that a lender is exposed to when a borrower defaults. Therefore, it is the maximum that a bank may lose when a borrower defaults on a loan.
Which of the following global manufacturing company has decided to invest an estimated $700 million to set up a new manufacture and assemble devices pla...
Zaakpay has received in-principle authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator that will allow Zaakpay to onb...
According to the analysis of the Global Trade Research Initiative (GTRI),the country's total exports and imports of goods and services is to cross the _...
___________ is going to acquire an additional 4.75 per cent equity share capital of Falcon Autotech Pvt Ltd, for a total consideration of approximatel...
SEBI has approved amendments to the SEBI(Infrastructure Investment Trusts) Regulations, 2014 and SEBI (Real Estate Investment Trusts) Regulations, 201...
Who unveiled the statues of Lord Basaveshwara ji and Nadaprabhu Kempegowda ji at the State Assembly premises in Bengaluru, Karnataka?
Which banks recently signed MoUs with the Indian Renewable Energy Development Agency Ltd (IREDA) to accelerate the growth of renewable energy in India?
Who has been sworn in as the 41st Prime Minister of New Zealand?
The 2022 edition of the NMDC Hyderabad Marathon is going to be held on?
What is the aim of the Kisan Credit Card Scheme (KCC)?