Answer Posted / mayank
credit risk with respect to banks is wheather the borrower
would be able to return the amount of loan which he has
taken . since banks need to give loans to priority sectors
which include some risky sector therefore bank is exposed
to lots of uncertainity that is why it is essentials for
banks to keep certain amount of reserve and capital to
cover those risks
| Is This Answer Correct ? | 2 Yes | 1 No |
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