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AIWMI Exam CCRA-L2 Topic 8 Question 82 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 82
Topic #: 8
[All CCRA-L2 Questions]

Provisioning Coverage Ratio (PCR) is essentially the ratio of provisioning to ______ and indicates the extent

of funds a bank has kept aside to cover loan losses.

Show Suggested Answer Hide Answer
Suggested Answer: B

Contribute your Thoughts:

Brandon
4 months ago
Exactly, it's crucial for a bank to have enough funds set aside for unexpected losses.
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Vincenza
4 months ago
That makes sense, since the purpose of PCR is to cover potential losses on loans.
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Roxanne
4 months ago
I believe PCR should be calculated on A) total loan portfolio because it directly relates to loan losses.
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Dorsey
4 months ago
So, what do you think PCR should be calculated on?
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Brandon
4 months ago
Yes, it shows how well the bank is prepared for potential loan losses.
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Vincenza
4 months ago
I think PCR is really important in assessing a bank's financial health.
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Tracey
5 months ago
I think Glenn is correct. The PCR should be calculated based on the total loan portfolio to ensure adequate coverage for loan losses.
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Skye
5 months ago
I'm not sure, but I think it's actually the total assets that are used for PCR calculation.
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Page
5 months ago
I disagree, I believe it's based on the gross non-performing assets.
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Glenn
6 months ago
I think the PCR is calculated using the total loan portfolio.
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