Question: Although credit scoring is an important objective tool to approve loans to business companies, prudent credit risk policy should look at other qualitative and market

Although credit scoring is an important objective tool to approve loans to business companies, prudent credit risk policy should look at other qualitative and market factors. According to the Bloomberg video uploaded for this activity, it seems that future economic cycles are important factors to build bank asset portfolio.

Discuss the above statement in view of your understanding of the qualitative models (Additional considerations) by taking one of the following positions:

A. Qualitative factors are important to consider in structuring bank's future asset portfolio.

B. I think credit scoring only is enough to consider when approving future loans.

C. I think both A & B above are not related to the bank portfolio. It is only about single loan credit risk policies

D. I have my own take on this issue.

up to 170 words

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