Credit Exposure Calculation for Correspondent Bank - Exam CRCM: Certified Regulatory Compliance Manager

Bank A's Calculation of Credit Exposure to Bank B

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Bank B is a correspondent of Bank A. Which of the following must be included in Bank A's calculation of credit exposure to Bank B?

A. A loan to Mr. Pierce from Bank A secured by Bank B common stock

B. Bank B's purchase of U.S. government T-Bills on behalf of Bank A under an overnight repurchase arrangement

C. Bank A's deposit account of $1 million in Bank B

D. A letter of credit issued by Bank B and pledged against the ACME Company's debt at Bank A

Click on the arrows to vote for the correct answer

A. B. C. D.

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