Start learning 50% faster. Sign in now
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.
When were the first Summer Olympic Games held?
Which nation was the host for the Group of Twenty (G20) Agriculture Ministerial Meeting (AMM) in September 2024?
Which organization launched the Nancy Grace Roman Space Telescope, set to be launched in 2026, with a focus on searching for primordial black holes?
Match the following personalities with their brands/roles:
According to Dr. B.R. Ambedkar's views, which of the following is the key feature of the Directive Principles of the Constitution?
Tulsidas Balaram,country’s finest player has passed away. He belonged to which sport?