1. Explain the difference between bank credit risk and bank capital risk?
2. What is the difference between lending to individual borrowers via a residential home mortgage compared to other types of consumer lending?
3. (i) Graph on two separate lines for 2007 to 2014 (1) the residential loans as a percentage of total loans and (2) impaired loans (NPLs)/gross loans. Please include the 4 major Australian banks and Barclays Bank* in the UK.
(ii) Explain the reasons for any change in the importance of residential loans
(iii) Interpret these banks' credit quality over 2006-2014
4. Explain the impact you would expect from Australia's introduction of comprehensive credit reporting (CCR).
Word limit: 2,000 words