12m ECL Learning Question
Initially, the probability of default in the next 12 months is 10%.
The present value of cash shortfalls expected over the life of the loan if default occurs in the next 12 months is $100,000.
Calculate the 12m ECL
Initially, the probability of default in the next 12 months is 10%.
The present value of cash shortfalls expected over the life of the loan if default occurs in the next 12 months is $100,000.
Calculate the 12m ECL