Question

Banks will not be able to mitigate risks in their credit portfolio, if they

Q: Answer-Banks will not be able to mitigate risks in their credit portfolio, if they

Credit risk is associated with the risk of default. Taking exposure in few select industries poses the bank to the concentration risk, thereby increasing the credit risk for the bank.

A secure loans by mortgages

B secure loans by third party guarantees

C diversify their portfolio across all regions

D Take exposures in few select industries

E None of the above

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Banks will not be able to mitigate risks in their credit portfolio, if they

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