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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.

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Suggested Answer: B

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

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Eun
2 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
2 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
2 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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Melissa
2 months ago
Hold up, is this really just a ratio of provisioning to total assets? That seems too simple. I'll go with B, the one that mentions non-performing assets.
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Marta
1 months ago
I'm going with B, gross non-performing assets.
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Mattie
2 months ago
I think it's A, total loan portfolio.
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Lavelle
2 months ago
I agree with Kayleigh, the purpose of PCR is to ensure banks have enough funds set aside for potential loan losses, so A) total loan portfolio seems like the correct answer.
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Kayleigh
3 months ago
But PCR is specifically related to covering loan losses, so it makes sense for it to be based on the total loan portfolio.
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Brandon
3 months ago
I disagree, I believe the answer is C) total assets.
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Kayleigh
3 months ago
I think the answer is A) total loan portfolio.
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Wilda
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
3 months ago
Exactly, it's a key indicator of a bank's financial health.
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Trevor
3 months ago
So, the higher the PCR, the better the bank's ability to handle defaults.
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Katie
3 months ago
It makes sense, since PCR is about covering potential loan losses.
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Camellia
3 months ago
I agree, B - gross non-performing assets is the right choice.
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