User Account

All Pages

Credit risk analysis question

Assignment Help Finance Basics
Reference no: EM132999152

Credit Risk analysis question

In a crowded and competitive market like India , 95% of participants do not follow the risk based pricing . There is a change in the management of an existing private sector bank . The bank is in existence for last 75 years but new management took over about 10 years back . Since the taking over the new management , the bank did not follow the risk based pricing like other banks of the market . Due to sharp increase in bad loan , the regulator did not sanction the extension request of the former CEO. A new CEO joined the bank about two months ago . The new CEO has decided to implement the risk based pricing of its loan book on immediate basis . However , huge resistance came up from the business and other stake holders . These stakeholders have pointed that introduction of such harsh measures would only exasperate the existing problems due to reduction on credit growth post implementation of the risk based pricing . With COVID 19 induced stress in the system , these stakeholders expressed the concern that such steps would cause more harm .

Please analyse the above situation and as a CEO mention strategies to introduce risk based pricing framework in a successful manner.

Reference no: EM132999152

Questions Cloud

What is the cost of capital for project : Your local municipality is building a new complex housing the homeless. The municipality is listed on the local exchange with an equity return of 8%. For buildi
What is the annual operating cash flow : Potato Game, Inc. is considering a new five-year expansion project that requires an initial fixed asset investment of $6.089 million. The fixed asset will be de
Determine the set of all interest rates : Asset A generates $4 at t=1, $3 at t=2, and $10 at t=3. Asset B generates $2 at t=1, $6 at t=2, and $10 at t=3.
Describe lifo and fifo inventory methods : Provide one example of a business that uses LIFO and 1 example of a business that uses FIFO. Explain LIFO and FIFO inventory methods.
Credit risk analysis question : In a crowded and competitive market like India , 95% of participants do not follow the risk based pricing . There is a change in the management of an existing p
Outlining new processes required to administer plan : The organization you work for is changing their benefit plan system from billed to self-administered effective December 1 of this year. As the Payroll Manager,
What is the expected return of the portfolio : During the most recent year a portfolio X has generated a return rate of 7,50% with a standard deviation of 7,0%. Risk-free rate for the market is 4,5%. The mar
Accuracy of estimation of a bond price : An investor owns a bond with a modified duration of 0,5. At the moment YTM for that bond is equal to 3,28%. What will be the magnitude of bond price change if Y
Determine the after-tax cash flows and the net present value : Mia Carriers has determined that a new specialised. Determine the after-tax cash flows and the net present value of the cash outflows under each alternative.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd