Which of the following statement(s) is (are) false? Select one or more: Banks have to...
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Finance
Which of the following statement(s) is (are) false? Select one or more: Banks have to set up dynamic provisions purely due to regulations. When firm defaults, the coordination problems between junior and senior debtholders are very challenged. If the borrower defaults more than 90 days on loan, banks have to treat them as impaired assets. Loan covenants can not limit the risk-taking behaviour of borrowers. Limiting the dividend policies of borrowing firms, it is a way to secure the loan payments
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