ABC Bank’s regulators require that the bank use multiple risk mitigating approaches for the upcoming stress testing. Critically discuss the credit risk management approaches used by banks. Comment on the strengths and weaknesses of each approach.
You are given the latest trading book of ABC Bank (in the Excel Data file for the Referral/Deferral Final Report). In the list of items, two stocks were added to the portfolio just now and they are currently the least liquid items in the trading book of the Bank. You are required to quantify the […]