Question
how can a commercial bank create a loan loss provision of 4% when the mark to market loss of that asset is almost 12% (price
how can a commercial bank create a loan loss provision of 4% when the mark to market loss of that asset is almost 12% (price drops down from 100% to 88%? )What justifications might the Fed give(Hint: think of how they estimate the loan loss provision)?
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
