Explanation:

Delinquency ratio = $\frac{\text{(Receivables overdue for more than 90 days)}}{\text{(Total receivables)}} = \frac{(130 + 60)}{1210} = 15.7\%$

Default ratio = $\frac{\text{(Amount Written off during the period)}}{\text{(Total receivables for the period)}} = \frac{35}{1210} = 2.89\%$

Q.3046 Tahoma Bank manages the largest pool of consumer credit in the city of Minneapolis. It issues its credit card to US consumers. The aging analysis of its receivables is provided hereunder:

0 – 30 Days `$600` Million
31 – 60 Days `$250` Million
61 – 90 days `$170` Million
91 – 120 Days `$130` Million
121 days and more `$60` Million
Total `$1`,210 Million

Suppose that the amount written off during this period is 35 Million. Based on this information, the delinquency ratio and default ratio for Tahoma Bank are closest to:

Exam-Like

Community

UAnonymous

Last updated: July 5, 2026 at 07:27

Delinquency ratio: 4.96%; Default ratio: 15.7%

Delinquency ratio: 2.89%; Default ratio: 4.96%

Delinquency ratio: 15.7%; Default ratio: 2.89%

Delinquency ratio: 10.7%; Default ratio: 3.84%

Financial Risk Manager Part 2