Why are most retail borrowers charged the same rate of interest, implying the same risk premium or

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Why are most retail borrowers charged the same rate of interest, implying the same risk premium or class? What is credit rationing? How is it used to control credit risks with respect to retail and wholesale loans?

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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Question Posted: Dec 17, 2015 04:50 AM

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Why are most retail borrowers charged the same rate of interest, implying the same risk premium or

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Most retail loans are small in size relative to the overall investment portfolio of an FI and the co...View the full answer

Financial Institutions Management A Risk Management Approach

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