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A commercial bank with a structured loan portfolio as shown below is faced with a spike in demand for car loans from individual clients i.
A commercial bank with a structured loan portfolio as shown below is faced with a spike in demand for car loans from individual clients i. What advice would you give the credit manager as to the impact of the spike on the overall risk profile of the lending portfolio which currently stands at: Motor Vehicle loans: 30% Mortgage loans: 40% Credit Card Advances: 30% ii. What are the risks would you advise the credit manager to consider in the structuring of motor vehicle loans, given the demand.
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