To manage loan portfolio and concentration risk, there are different credit tools and theory. Why should a bank use migration analysis in managing concentration risk? Is there any weakness in using migration?


How modern portfolio theory (MPT) can be applied to lower the credit risk of bank's portfolio? Is there any difficulty for small to medium size bank with a small asset base to use MPT their credit risk?

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I i To determine the permissible limit for loan and credit losses regulatory bodies recommend a rigo... View the full answer