General Studies · Risk Management & Restructuring
When a bank considers the re-scheduling or restructuring of a stressed Retail Loan, what is the primary structural risk the bank is trying to mitigate by altering the asset parameters?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The operational risk of losing tracking parameters after the loan terms are altered.
- 2The commercial risk of executing a forced distress sale of the collateral asset below its book value.
- 3The risk of the entire asset being downgraded to a Non-Performing Asset (NPA) or a Loss Asset in the immediate financial year.✓
- 4The ethical risk of the borrower instantly converting into a willful defaulter status.
Correct answer
The risk of the entire asset being downgraded to a Non-Performing Asset (NPA) or a Loss Asset in the immediate financial year.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Risk Management & Restructuring MCQs →Want more practice questions on Risk Management & Restructuring?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Risk Management & Restructuring