AIWMI Exam CCRA-L2 Topic 1 Question 94 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 94
Topic #: 1

[All CCRA-L2 Questions]

Provisioning Coverage Ratio (PCR) is essentially the ratio of provisioning to ______ and indicates the extent

of funds a bank has kept aside to cover loan losses.

Atotal loan portfolio

Bgross non-performing assets

Ctotal assets

Show Suggested Answer

Suggested Answer: B

by Bernadine at Aug 03, 2024, 01:45 PM

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Eun

3 months ago

Provisioning Coverage Ratio, huh? Sounds like something straight out of a financial thriller. I'm going with B - the one that mentions 'non-performing assets'. Gotta love those banking buzzwords!

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Lorean

3 months ago

Hmm, I wonder if the bank's total loan portfolio would also be a valid answer. But I'll stick with B, seems like the most relevant option.

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Kip

3 months ago

This is a classic banking concept. The answer has to be B - gross non-performing assets. Can't be anything else.

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4 months ago

Provisioning Coverage Ratio is all about the bank's reserves to cover potential loan defaults. Definitely going with B - gross non-performing assets.

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Audry

4 months ago

Exactly, it's a key indicator of a bank's financial health.

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Trevor

4 months ago

So, the higher the PCR, the better the bank's ability to handle defaults.

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Katie

4 months ago

It makes sense, since PCR is about covering potential loan losses.

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Camellia

4 months ago

I agree, B - gross non-performing assets is the right choice.

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