AIWMI Exam CCRA-L2 Topic 9 Question 86 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 86
Topic #: 9

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 Ardella at Apr 28, 2024, 02:34 PM

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6 months ago

That makes sense. It's not total assets or total loan portfolio, they're too broad.

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6 months ago

Because PCR shows how much a bank has set aside for loan losses specifically from non-performing assets.

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6 months ago

Why do you think that?

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7 months ago

I think the answer is gross non-performing assets.

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7 months ago

Yeah, it asked about the ratio of provisioning to what.

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7 months ago

Hey, did you see the exam question on PCR?

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