Prepare for the AIWMI Certified Credit Research Analyst - Level 2 exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.
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Provisioning Coverage Ratio (PCR) is essentially the ratio of provisioning to ______ and indicates the extent
of funds a bank has kept aside to cover loan losses.
Following is information related banks:
Auckland Ltd is a public sector bank operating with about 120 branches across Indi
a. The bank has been in business since 1971 and has about 40% branches in rural areas and about 75% of all branches are in
Western India. On the basis of the size, Auckland Ltd will be ranked at number 31 amongst 40 banks in India.
Although top management has appointment period of 5 years, generally they retire on ach sieving age of 60 years with an average tenure of only 2 years at the top job.
Profit and Loss Account

Balance Sheet

The rating wise break-up of assets for FY11 is as follows:

Computer risk weighted assets for Auckland Ltd for FY11:
Scott is a credit analyst with one of the credit rating agencies in Indi
a. He was looking in Oil and Gas Industry companies and has presented brief financials for following 4 entities:
Two credit analysts are discussing the DM-approach to credit risk modeling. They make the following statements:
Analyst A: A portfolio's standard deviation of credit losses can be determined by considering the standard deviation of credit losses of individual exposures in the portfolio and summing them all up.
Analyst B: I do not fully agree with that. Apart from individual standard deviations, one also needs to consider the correlation of the exposure with the rest of the portfolio so as to account for diversification effects. Higher correlations among credit exposures will lead to higher standard deviation of the overall portfolio.
Following is information related banks:
Auckland Ltd is a public sector bank operating with about 120 branches across Indi
a. The bank has been in business since 1971 and has about 40% branches in rural areas and about 75% of all branches are in
Western India. On the basis of the size, Auckland Ltd will be ranked at number 31 amongst 40 banks in India.
Although top management has appointment period of 5 years, generally they retire on ach sieving age of 60 years with an average tenure of only 2 years at the top job.
Profit and Loss Account

Balance Sheet


The rating wise break-up of assets for FY11 is as follows:

The ROTA for Auckland deteriorated from ___in FY12 to___ in FY13.
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