1. Explain the difference between accounting, regulatory and internal provisioning policies.
2. Why are some parts of the business cycle identified with increased numbers of problem loans?
3. Would the timing of the business cycle influence the management of the business cycle?
4. What steps would you take if a borrower breached a covenant, leading it to technical default? Your answer should highlight the contract issues.

Answer rating: 100% (QA)

1 Difference between accounting regulatory and internal provisioning policies Accounting provisioning policies These are guidelines or rules established by accounting standards such as GAAP or IFRS th... View the full answer