Management of Banking and Financial Services, 2nd Edition

CHAPTER EIGHT

Managing Credit Risk—An Overview

CHAPTER STRUCTURE

Section I Basic Concepts

Section II Measuring Credit Risk—Introduction to Some Popular Credit Risk Models

Section III Credit Risk Transfers—Loan Sales and Credit Derivatives

Section IV Treatment of Credit Risk in India—Some Important Exposure Norms, Prudential Norms for Asset Classification, Income Recognition and Provisioning

Section V Treatment of Credit Risk in India—Securitization and credit derivatives

Chapter Summary

Test Your Understanding

Topics for Further Discussion

Annexures I, II

KEY TAKEAWAYS FROM THE CHAPTER

• Understand the concept of credit risk

• Know how credit risk arises

• Learn about credit risk mitigation techniques, such as securitization and credit derivatives ...