Which of the following is not a qualitative factor in credit risk analysis?

Question

Quizplus · Accepted Answer

Borrower ethnic origin is not a qualitative factor in credit risk analysis. Qualitative factors are subjective and include elements such as borrower reputation, management quality, industry outlook, and financial flexibility. Borrower ethnic origin is not relevant for credit risk analysis, as it does not affect the borrower's ability to repay the loan or the likelihood of default. Factors such as leverage position of the borrower, interest rates, and economic conditions are quantitative in nature and can be measured objectively.

Which of the Following Is Not a Qualitative Factor in Credit