Topic: INTRODUCTION TO ASSETS AND LIABILITY MANAGEMENT

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RM – JUL 2020 – L4 – Q7 – Securitization Concept and Risks

Explain securitization in detail and discuss risk concerns for buyers of securitized instruments.

(a) Explain in detail the concept of securitization. (5 marks)

(b) What risk concerns should a buyer of a securitized instrument be aware of? (15 marks)

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RM – JUL 2020 – L4 – Q4 – Depositor Concentration Risk and Sectoral Concentration in ALM

Explain depositor concentration risk, how to address it, and why management should worry about sectoral concentration in loans within ALM context.

In the context of Assets and Liability Management, explain;

(a) What depositor concentration risk (liability) is, and how this poses a risk to your bank? (5 marks)

(b) How would you address this particular risk? (10 marks)

(c) Why should a bank’s management be concerned about sectoral concentration risk (disproportionate exposure to a particular sector of the economy) in its loan portfolio? (5 marks)

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RM – JUL 2020 – L4 – Q7 – Securitization Concept and Risks

Explain securitization in detail and discuss risk concerns for buyers of securitized instruments.

(a) Explain in detail the concept of securitization. (5 marks)

(b) What risk concerns should a buyer of a securitized instrument be aware of? (15 marks)

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Find Related Questions by Tags, levels, etc.

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You're reporting an error for "RM – JUL 2020 – L4 – Q7 – Securitization Concept and Risks"

RM – JUL 2020 – L4 – Q4 – Depositor Concentration Risk and Sectoral Concentration in ALM

Explain depositor concentration risk, how to address it, and why management should worry about sectoral concentration in loans within ALM context.

In the context of Assets and Liability Management, explain;

(a) What depositor concentration risk (liability) is, and how this poses a risk to your bank? (5 marks)

(b) How would you address this particular risk? (10 marks)

(c) Why should a bank’s management be concerned about sectoral concentration risk (disproportionate exposure to a particular sector of the economy) in its loan portfolio? (5 marks)

Login or create a free account to see answers

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You're reporting an error for "RM – JUL 2020 – L4 – Q4 – Depositor Concentration Risk and Sectoral Concentration in ALM"

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