Unit Assignment Task

Loans can turn bad and increase banks' impaired loan position (non-performing loan). The impaired loans would increase credit risk to the detriment of bank insolvency.

Discuss this issue complete with thorough analysis of the issue, causes, bank actions and solutions to minimize loss from rising credit risk and bank insolvency.

Marks will be awarded for thorough analysis of issues, causes, bank actions and solutions to minimize impaired loans and bank insolvency.

This assignment will constitute 30% of the final 100%. The Marking Matrix is as follows:

Comprehensiveanalysis of issues

8 %

In-depth discussion of causes with examples

10%

Sound discussion of bank actions and solutions

12%

Total

30%