Question

Evaluate how and why Australian banks’ credit risk exposure may be affected by the current COVID-19...

Evaluate how and why Australian banks’ credit risk exposure may be affected by the current COVID-19 pandemic in the foreseeable future. Comment on whether you believe Australian banks have the resilience to weather this challenging episode and why or why not. Your answers should be relevant to banks’ credit risk.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Banks main objective is to maintain Asset liability management with profitability.

Due to Covid 19, the loan book of major banks is in peril. Corporate loan book looks more risky than retail loan book. Due to lockdown many people have their lost jobs and big corporates have shaggy sales . NPA are expected to u crease. Most banks have decided to raise money to maintain basic ratios like capital adequacy.

With quarter 4 expected a rebound, till then banks are on a slippery floor. Only income which has increased is their trading income which is considered non ooerating income. Banks have increased rate on deposits and trying to fund the existing clients. Banks will come out stronger in q4 due to govt support and return in demand in the expected holiday season.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a. Detail and give examples of two (2) financial ratios often used to provide a direct...
a. Detail and give examples of two (2) financial ratios often used to provide a direct measure of a commercial bank’s credit risk exposure. Guide: 200 words, 4 marks. b. Find annual (yearly) data to calculate and graph the two ratios discussed in part (a) for the top four Australian banks over 2014-2019. Conduct trend and peer analyses based on your graphs, and comment on these banks’ credit risk management approaches. Guide: 400 words, 9 marks. You must provide two...
Case: Covid-19 and Leadership Response The COVID-19 pandemic remains a health and humanitarian crisis, but the...
Case: Covid-19 and Leadership Response The COVID-19 pandemic remains a health and humanitarian crisis, but the business impact on organizations is now profound. As governments make significant interventions in response to the coronavirus, businesses are rapidly adjusting to the changing needs of their people, their customers and suppliers, while navigating the financial and operational challenges. With every industry, function and geography affected, the amount of potential change to think through can be daunting. The greatest immediate impact of the COVID-19...
Assignment Requirements: The coronavirus (COVID-19) pandemic has significantly affected businesses around the globe. This include interruption...
Assignment Requirements: The coronavirus (COVID-19) pandemic has significantly affected businesses around the globe. This include interruption of production, businesses closures, reduced demands, and disruption to supply chains and to financial markets. These effects will have some impacts on financial reporting especially in the application of some IFRS/IAS/AASP standards. In this assignment you are required to answer the following questions: 1. List Eight accounting considerations that are impacted by the Coronavirus 2019 disease. 2. Choose Five of the Eight you listed...
Findings  In a cohort of 2215 adults with COVID-19 who were admitted to intensive care units at...
Findings  In a cohort of 2215 adults with COVID-19 who were admitted to intensive care units at 65 sites, 784 (35.4%) died within 28 days, with wide variation among hospitals. Factors associated with death included older age, male sex, morbid obesity, coronary artery disease, cancer, acute organ dysfunction, and admission to a hospital with fewer intensive care unit beds. Meaning  This study identified demographic, clinical, and hospital-level factors associated with death in critically ill patients with COVID-19 that may be used to...
Months into the COVID-19 pandemic, which continues to affect a growing number of countries and people,...
Months into the COVID-19 pandemic, which continues to affect a growing number of countries and people, 1 the responses to our newest McKinsey Global Survey on economic sentiment confirm the extent of the damage so far. 2 Respondents are much likelier now than in March (52 percent, up from 10 percent) to say their countries’ economies have declined substantially in recent months, and more than twice as likely to report substantially worse conditions in the global economy. Across geographies, vast...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
Read the attached articles about the proposed merger of Xerox and Fujifilm. Utilizing your knowledge of...
Read the attached articles about the proposed merger of Xerox and Fujifilm. Utilizing your knowledge of external and internal analysis, business and corporate strategy, and corporate governance, please discuss the following questions: 1. What is the corporate strategy behind the merger of Xerox and Fujifilm? 2. Why did Xerox agree to the merger? Is this a good deal for Xerox? Discuss the benefits and challenges they face with the merger. 3. Why did Fujifilm agree to the merger? Discuss the...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT