Match each asset class to its provision

Exercise and reference answers

Matching pairs

1. Left

   Substandard

   Right

   15 per cent of outstanding

2. Left

   Unsecured sub std

   Right

   25 per cent of outstanding

3. Left

   Doubtful, yr 1

   Right

   25 per cent of the secured part

4. Left

   Doubtful, yr 2

   Right

   40 per cent of the secured part

5. Left

   Doubtful, over 3

   Right

   100 per cent of the secured part

6. Left

   Loss asset

   Right

   100 per cent of outstanding

Instructions

Tap a class on the left, then tap its rate.

Explanation