Question

Which of the following products of a bank can have credit risk?
A. fund based loans
B. non fund based loans
C. treasury products

Q: Answer-Which of the following products of a bank can have credit risk? A. fund based loans B. non fund base...

Credit risk the risk of loss due to default by the customer to meet the commitments of the product. A credit risk may arise in the loans and advances extended by the bank, either in form of fund based loans like term loans or non-fund based loans like bank guarantees. A credit risk may also occur in treasury products when a bonddebt instrument invested in, defaults in its obligations.