Question

    What is the general provision required for substandard assets, without considering ECGC guarantee cover and securities available?

    A 10% Correct Answer Incorrect Answer
    B 15% Correct Answer Incorrect Answer
    C 20% Correct Answer Incorrect Answer
    D 25% Correct Answer Incorrect Answer
    E 30% Correct Answer Incorrect Answer

    Solution

    As per 5.4.1, a general provision of 15% on the total outstanding should be made for substandard assets, without making any allowance for ECGC guarantee cover and securities available.

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