What is its expected recovery from defaulted consumer

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Question - A bank has a maximum loss it permits to affect its total capital in the event of default of 8%. Given a concentration limit of 0.35 (i.e., 35 percent of capital) it sets for the consumer sector, what is its expected recovery from defaulted consumer loans (i.e., percent recovered value of contractually promised principal and interest payments)?

Reference no: EM133039025

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