Question

As per the guidelines of the Basel Committee for Banking Supervision (BCBS), credit losses on stage 1 assets will be categorised as _______ provisions and credit losses on stage 3 assets will be categorised as _________ provisions?

A Primary & Secondary respectively Correct Answer Incorrect Answer
B General & Specific respectively Correct Answer Incorrect Answer
C Primary & Additional respectively Correct Answer Incorrect Answer
D Primary & Specific respectively Correct Answer Incorrect Answer
E Standard & Substandard Correct Answer Incorrect Answer

Solution

As per the guidelines of the Basel Committee for Banking Supervision (BCBS), credit losses on stage 1 assets will be categorised as general provisions and credit losses on stage 3 assets will be categorised as specific provisions.

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