Crisil Manager Interview Questions and Answers for Experienced

Top credit risk parameters in banking portfolio

• Probability of Default (PD)

• Loss Given Default (LGD)

• Exposure at Default (EAD)

• Credit Rating of the borrower

• Loan-to-Value ratio (LTV)

• Debt-to-Income ratio (DTI)

Expected credit loss computation impacts traditional loss provision framework by incorporating forward-looking information and requiring more complex calculations.

• Expected credit loss computation considers future expected credit losses based on historical data, current conditions, and reasonable and supportable forecasts.

• Traditional loss provision framework typically only considers incurred losses based on historical d...read more