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Q2. Regulations require banks to do detailed disclosure on the quality of assets, discuss this statement...

Q2. Regulations require banks to do detailed disclosure on the quality of assets, discuss this statement and explain the kind of disclosure on quality of loans done by banks working in Saudi Arabia.

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Banks require to disclose various asset quality reports, these reports basically an evaluation assessing the credit risk associated with a particular asset. These assets usually require interest payments like loans , investment portfolios etc. Asset Quality is an important determination of risk, analyst go to great lengths to try and figure how how it will have an impact on the Bank.

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