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Posted on May 19, 2024

Credit risk is a significant risk factor for commercial banks because a. A substantial portion of a bank's income is derived from performing loans. b.

Credit risk is a significant risk factor for commercial banks because

a. A substantial portion of a bank's income is derived from performing loans.

b. Write-offs of bad loans reduces capital available to lend.

c. Non-performing loans negatively affect Tier 1 capital.

d. Only a and c are correct.

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