exam questions

Exam SCR All Questions

View all questions & answers for the SCR exam

Exam SCR topic 1 question 71 discussion

Actual exam question from GARP's SCR
Question #: 71
Topic #: 1
[All SCR Questions]

A European bank surveyed its most prominent clients to assess interest in sustainability-linked loans (SLLs) and green loans. The survey came after a recent study showed higher profitability rates of SLLs and green products than classical banking products. After positive feedback, the bank decides to introduce SLLs and green loans. The bank’s sustainability loan officer writes a new loan product guideline for corporate clients that explains SLLs and green loans.
How will the bank officer describe these loan types?

  • A. Green loans can be applied more broadly on the corporate loan market than SLLs since there are no predetermined performance targets for SLLs.
  • B. SLLs require external review, while green loans require external review if the loan information is not publicly available.
  • C. SLLs incentivize borrowers through margins, while green loans focus on the purpose of the loan.
  • D. Market participants are unable to structure a loan to meet both the characteristics of a green loan and an SLL.
Show Suggested Answer Hide Answer
Suggested Answer: C 🗳️

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
Currently there are no comments in this discussion, be the first to comment!
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
Loading ...
exam
Someone Bought Contributor Access for:
SY0-701
London, 1 minute ago