30 years: Capital markets & investment banking
Peter covers credit risk and its applications in the real world. Starting with both qualitative and quantitative assessments, before considering the consequences of a borrow default.
Peter covers credit risk and its applications in the real world. Starting with both qualitative and quantitative assessments, before considering the consequences of a borrow default.
22 mins 6 secs
Everything at a bank revolves around credit risk. A banker’s job is to be wary of and manage the risk as best it can. If the risk is left ungoverned, the consequence could be catastrophic - for example, liquidation.
Key learning objectives:
Identify the actions banks can take to manage credit risk and the financial ratios used
Define credit risk
Learn what the bank can do if the borrower doesn’t repay
16:07