Which of the following is NOT a method banks use to control credit risk?
A) specialization
B) credit rationing
C) gap analysis
D) collateral requirements

Name: Which of the following is NOT a method banks use to control credit risk? A) specialization B) credit rationing C) gap analysis D) collateral requirements
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Question

Quizplus · Accepted Answer

Gap analysis is a method used to manage interest rate risk, not credit risk. It assesses the difference (gap) between the assets and liabilities that are re-priced in a given time period.

Which of the Following Is NOT a Method Banks Use