Calculate the Expected Loss (EL) percentage for the bank below based on the industry parameters...
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Accounting
Calculate the Expected Loss (EL) percentage for the bank below based on the industry parameters provided. Divide the total expected loss by the total loans in the portfolio.
Industry
Loan Portfolio ($)
APD
LGD
EL
Construction
$50,000,000
3.50%
40%
Fast-food restaurants
$80,000,000
3.00%
20%
Lodging (hotels)
$120,000,000
2.30%
35%
Landscaping
$30,000,000
1.50%
80%
Total
$280,000,000
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