Question 22 (25 marks) a) An approach to the evaluation of international credit starts with the country risk analysis using the step-down approach. What are the major points to be considered in this approach? (10 marks) b) Briefly discuss the three approaches (provisions) that financial institutions use to account for loans when they become impaired or show the potential of becoming impaired, and how each of these approaches affect the profitability of the institutions? (10 marks) c) Briefly define securitisation and distinguish between the two main approaches to securitization. (3 Marks) d) Name two non-bank companies with operations in Jamaica that could benefit from the use of securitisation. (2 marks) END OF SECTION B 6