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AIWMI Exam CCRA-L2 Topic 8 Question 88 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 88
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.

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Suggested Answer: B

by Earleen at May 20, 2024, 11:07 PM

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Sharika
10 months ago
Wait, is this a trick question? I bet the answer is a combination of all three - the bank needs to provision for their entire loan book, their non-performing assets, and their overall financial position. This is going to keep me up at night!
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Sabina
10 months ago
I'm going with total assets. It's the most comprehensive metric, right? The bank needs to have enough provisions to cover potential losses across their entire balance sheet.
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Caprice
9 months ago
I agree, total assets is the most comprehensive metric to consider when evaluating a bank's provisioning coverage ratio.
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Erick
9 months ago
Yes, total assets is the correct answer. It gives a more holistic view of the bank's ability to cover potential losses.
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Mirta
9 months ago
C) total assets
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Louisa
9 months ago
B) gross non-performing assets
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Nobuko
9 months ago
Exactly, total assets includes all assets held by the bank, giving a more comprehensive picture of their provisioning coverage.
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Glynda
9 months ago
Yes, total assets is the correct answer. It provides a broader view of the bank's ability to cover potential losses.
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Floyd
10 months ago
C) total assets
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Chun
10 months ago
B) gross non-performing assets
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Willodean
10 months ago
A) total loan portfolio
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Mel
10 months ago
C) total assets
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Wilbert
10 months ago
A) total loan portfolio
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Glen
10 months ago
A) total loan portfolio
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Desmond
11 months ago
Hmm, I think it's the ratio of provisioning to the total loan portfolio. That makes the most sense to me, since the bank needs to cover all their loans, not just the non-performing ones.
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Christiane
10 months ago
Yeah, that would ensure the bank has enough funds to cover all their loans.
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Rosendo
10 months ago
I agree, it does make sense that it's the total loan portfolio.
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Annamaria
11 months ago
PCR is definitely the ratio of provisioning to gross non-performing assets. I mean, how else would a bank know how much they've set aside to cover loan losses?
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Helene
10 months ago
B) gross non-performing assets
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Simona
10 months ago
A) total loan portfolio
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