Mer SA estimates the expected credit loss of a loan portfolio under three economic scenarios. The losses, already expressed in present value, and the probabilities are case data: stable scenario 20,000 at 60 %; slowdown 80,000 at 30 %; recession 200,000 at 10 %. Calculate the probability-weighted expected credit loss.
- Loss, stable scenario
- 20,000
- Probability, stable scenario
- 60 %
- Loss, slowdown scenario
- 80,000
- Probability, slowdown scenario
- 30 %
- Loss, recession scenario
- 200,000
- Probability, recession scenario
- 10 %