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Introduction
Managing credit risk has always been a most risky business in the financial services industry. If we look back into the past, we will find that poor management of credit risk was the root cause of most of the major banking disasters the world has ever witnessed.
Being the oldest risk in the market, it was not given much attention and almost remained aloof to the advent of technology until the late 1990s. With the introduction of banking regulations, there is an awareness in the industry now to identify, measure, monitor and control credit risk as well as to determine that they hold adequate capital against this risk. Credit risk not only ...