a) Define "Banking Risk", giving key types of bank risks. (5 Marks)

b) Reference is made to:

Boateng, K. (2019). Credit risk management and performance of banks in Ghana: The camels rating model approach. International Journal of Business and Management Invention (IJBMI) ISSN (Online): 2319 8028, 8 (02) IV: 41-48.

Required:

Attempt the following questions.

i) Starting from "Credit Risk", explain what "Credit Risk Management" entails? (5 Marks)

ii) State and briefly explain components of CAMELS model, identifying parameters used to measure the components by Boateng (2019). (6 Marks)

iii) State the model specification and identify steps of analysis that was undertaken in a progressive order. (3 Marks)

iv) State and explain the resultant regression equation. (6 Marks).