Which of the following does not affect the credit risk facing a lender institution?

A$.$ The applicability or otherwise of mark to market accounting to the institution

B$.$ The state of the economy

C$.$ Credit ratings of individual borrowers

D$.$ The degree of geographical or sectoral concentration in the loan book

For a loan portfolio, expected losses are charged against:

A$.$ Credit reserves

B$.$ Economic capital

C$.$ Regulatory capital

D$.$ Economic credit capital

For a loan portfolio, unexpected losses are charged against:

A$.$ Economic credit capital

B$.$ Economic capital

C$.$ Credit reserves

D$.$ Regulatory capital

The capital adequacy ratio applied to risk weighted assets for the calculation of capital

requirements for credit risk per Basel $II$ is:

A$.100\%$

B$.12\mathrm{.}5\%$

C$.12\%$

D$.150\%$

Company A issues sukuks with a face value of $$100m,$ sold at $$98.$ Bank B holds $$10m$ in

face of these suikuks acquired at a price of $$70.$ Company A then defaults, and the recovery

rate is expected to be $30\%.$ What is Bank B$\text{'}$s loss?

A$.$ $$4m$

B$.$ $$4\mathrm{.}9m$

C$.$ $$7m$

D$.$ $$2\mathrm{.}1m$