AIWMI Exam CCRA-L2 Topic 8 Question 82 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 82
Topic #: 8

[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 Theola at Mar 07, 2024, 08:57 PM

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Brandon

6 months ago

Exactly, it's crucial for a bank to have enough funds set aside for unexpected losses.

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Vincenza

6 months ago

That makes sense, since the purpose of PCR is to cover potential losses on loans.

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Roxanne

6 months ago

I believe PCR should be calculated on A) total loan portfolio because it directly relates to loan losses.

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Dorsey

6 months ago

So, what do you think PCR should be calculated on?

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Brandon

6 months ago

Yes, it shows how well the bank is prepared for potential loan losses.

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Vincenza

6 months ago

I think PCR is really important in assessing a bank's financial health.

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Tracey

7 months ago

I think Glenn is correct. The PCR should be calculated based on the total loan portfolio to ensure adequate coverage for loan losses.

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Skye

7 months ago

I'm not sure, but I think it's actually the total assets that are used for PCR calculation.

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Page

7 months ago

I disagree, I believe it's based on the gross non-performing assets.

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Glenn

8 months ago

I think the PCR is calculated using the total loan portfolio.

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