Under Basel III, Banks Are Allowed to Use Their Internal

question 87

True/False

Under Basel III, banks are allowed to use their internal estimates of borrower creditworthiness to assess credit risk subject to strict disclosure standards.

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Definitions:

Means-ends Fashion

An approach to problem-solving that starts with a desired outcome and works backward to find the methods to achieve it.

Good Planning

The process of setting objectives, determining strategies, and outlining tasks and schedules to accomplish the goals efficiently and effectively.

Scenario Planning

A strategic planning method used to make flexible long-term plans based on the systematic examination of future potential events and their impacts.

Long-term Version

Long-term Version implies a perspective or plan that extends into the distant future, prioritizing sustainability, ongoing development, and the anticipation of future challenges and opportunities.