Which Model Involves Estimating the Systematic Loan Loss Risk of a Particular

question 26

Multiple Choice

Which model involves estimating the systematic loan loss risk of a particular sector or industry relative to the loan loss risk of an FI's total loan portfolio?

• A)CreditMetrics.
• B)Credit Risk +.
• C)Loan loss ratio-based model.
• D)KMV portfolio manager model.
• E)Loan volume-based model.

---

Definitions:

Traditional Communities

Societies or groups that adhere to longstanding customs, practices, and values, often resisting modern changes.

Modernity

A term that characterizes industrialized societies, including the decline of tradition, an increase in individualism, and a belief in progress, technology, and science.

Autonomy

The capacity to make an informed, uncoerced decision; often refers to the self-governance of individuals or groups.

Cultural Imperialism

The imposition of one culture’s beliefs and practices on another culture through media and consumer products rather than by military force.