Question

When are banks required to estimate potential future credit losses and establish financial buffers under the forward-looking Expected Credit Loss (EC

  • L system?
A Only after a loan transitions into a Non-Performing Asset (NPA)
B At the time of loan origination itself, well before any actual default occurs
C Exactly 90 days after the first repayment obligation is missed
D Only during the annual statutory audit review process
E When the borrowing entity officially files for liquidation or bankruptcy
Practice Next

Hey! Ask a query