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A commercial bank with a structured loan portfolio as described below is faced with a spike in demand for car loans from individual clients. Write
A commercial bank with a structured loan portfolio as described below is faced with a spike in demand for car loans from individual clients.
Write a report to the credit manager advising him about the following:
- The impact on the overall risk profile of the lending portfolio which currently stands at:
Motor vehicle loans: 30%
Mortgage loans: 40%
Credit card advances: 30%
- the risks to be considered in the structuring of a motor vehicle loan.
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