Question

What is the general provision required for substandard assets, without considering ECGC guarantee cover and securities available?

A 10% Correct Answer Incorrect Answer
B 15% Correct Answer Incorrect Answer
C 20% Correct Answer Incorrect Answer
D 25% Correct Answer Incorrect Answer
E 30% Correct Answer Incorrect Answer

Solution

As per 5.4.1, a general provision of 15% on the total outstanding should be made for substandard assets, without making any allowance for ECGC guarantee cover and securities available.

Practice Next
×
×