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It is said that banks never make bad loans; at least, they are not bad at the time they are made. However, banks find that
It is said that banks never make bad loans; at least, they are not bad at the time they are made. However, banks find that invariably a small portion of their loans become delinquent and eventually must be written-off. How can banks control its loan losses? Critically explain. (25 marks)
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