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.
What kind of infrastructure gives the highest impetus for a successful global financial center?
As per the International Financial Services Centres Authority (Global In-House Centres) Regulations, 2020 a Global In-House Centre may conduct its busin...
How many financial centres were researched for the Global Financial Centres Index (GFCI) 33 edition?
Which region poses significant competition to GFCs?
Who is the chairperson of the IFSCA?
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As per the IRDA Act 1999, when IRDA was established, it replaced _______under Insurance Act 1938.
An anchor investor is one of the following:
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On which date was the India International Bullion Exchange IFSC Limited (IIBX) launched?