Question
During the year 2018, ABC Bank extended the following: - USD 1 Million of housing loans to individuals* - USD 2 Million of Corporate Loans
During the year 2018, ABC Bank extended the following:
- USD 1 Million of housing loans to individuals*
- USD 2 Million of Corporate Loans
- Unutilized Credit lines to Corporations rated A+ for USD 3 Million
of which, USD 2 Million expire during the year 2018
USD 1 Million expire during the year 2022
- Sight LCs amounting to USD 500,000 issued to Unrated corporate active in the trade business
Undrawn Commitments |
| |
Short- Term | Long Term | |
Credit Conversion Factor | 20% | 50% |
Trade Finance
Credit conversion factor. 20%
* Risk is weighted at 35%
Find:
a) The credit risk weighted assets in relation to the housing loans most accurately?
b)The credit risk weighted assets in relation to the undrawn commitments?
c) The on-balance sheet equivalent of the trade finance exposure?
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