1. Banks' expected losses on their loan portfolio are critical for pricing transactions and has an important role in loan portfolio management. Given the current financial situation, the global markets are facing, what adjustments banks are required to make to their allocated capital to price loans more accurately?
2. Value at Risk has been a tool of choice for many risk managers over the years. It provided a tool to price loan risk. Given the current financial situation, the global markets are facing, is this still a good idea to continue pricing risk?