Banks around the world are suspending loan repayments as coronavirus hits borrowers Article below: Singapore The Monetary Authority of Singapore said individuals can apply to defer principal and interest repayment of residential property loans. With a global recession on the horizon as the coronavirus pandemic continues to ravage economies around the world, banks in various countries have scrambled to offer relief for those whose lives, jobs and businesses have been upended in the crisis. Homeowners with hefty mortgage repayments and borrowers who have taken large sums of bank loans to sustain their businesses risk falling into default as world economies take a sharp dive amid nation-wide lockdowns and a halt in most international travel. Pre-empting a potential tide of defaults from affected borrowers, Singapore's central bank on Tuesday (March 31) offered loan relief for individuals and companies. Individuals can apply to their banks to defer both principal and interest repayment of residential property loans until Dec 31, the Monetary Authority of Singapore said. Small and medium-sized firms can defer principal payments on secured term loans also up to the end of the year. Singapore isn't the only country offering generous mortgage deferrals amid the coronavirus crisis. Here are some other nations whose banks have sprung into action Malaysia Malaysia's central bank last week said banking customers would be allowed to delay repaying their existing loans for six months from Wednesday. The moratorium - part of Bank Negara's measures to help borrowers under strain due to the coronavirus outbreak - will automatically apply to all ringgit-denominated loans and financing not in arrears of more than 90 days, The Star reported. It will not apply to credit card balances. The central bank said banks should allow customers to convert their outstanding credit card balances into term loans of not more than three years. Following the announcement, several Malaysian banks said they would not be compounding interest for their customers during the six-month moratorium period. RHB Banking Group, Public Bank Bhd, Malayan Banking Bhd (Maybank), CIMB Bank Bhd, OCBC Bank (M) Bhd, HSBC Malaysia, AmBank Group, Affin Bank Bhd, United Overseas Bank (Malaysia) Bhd and Citi Malaysia were among those banks offering non-compounded interest for retail customers and small and medium-sized enterprises. Thailand Banks in Thailand announced a coronavirus debt-relief package in early March, offering companies a year-long grace period to repay their loans. The package came in tandem with state relief measures, and the grace period on loan repayments applied to companies in the tourism sector, exporters, importers and retailers, the Nikkei Asian Review reported. Britain Several banks in Britain have offered repayment holidays on mortgages and loans in an effort to stem a potential tide of defaults from borrowers affected by the coronavirus crisis. A ...

1. Banks around the world are suspending loan repayments as
coronavirus hits borrowers
Article below:
Singapore
The Monetary Authority of Singapore said individuals can apply
to defer principal and interest repayment of residential property
loans.
With a global recession on the horizon as the coronavirus
pandemic continues to ravage economies around the world,
banks in various countries have scrambled to offer relief for
those whose lives, jobs and businesses have been upended in the
crisis.
Homeowners with hefty mortgage repayments and borrowers
who have taken large sums of bank loans to sustain their
businesses risk falling into default as world economies take a
sharp dive amid nation-wide lockdowns and a halt in most
international travel.
Pre-empting a potential tide of defaults from affected
borrowers, Singapore's central bank on Tuesday (March 31)
offered loan relief for individuals and companies.
Individuals can apply to their banks to defer both principal and
interest repayment of residential property loans until Dec 31,
the Monetary Authority of Singapore said. Small and medium-

2. sized firms can defer principal payments on secured term loans
also up to the end of the year.
Singapore isn't the only country offering generous mortgage
deferrals amid the coronavirus crisis. Here are some other
nations whose banks have sprung into action
Malaysia
Malaysia's central bank last week said banking customers would
be allowed to delay repaying their existing loans for six months
from Wednesday.
The moratorium - part of Bank Negara's measures to help
borrowers under strain due to the coronavirus outbreak - will
automatically apply to all ringgit-denominated loans and
financing not in arrears of more than 90 days, The Star reported.
It will not apply to credit card balances. The central bank said
banks should allow customers to convert their outstanding
credit card balances into term loans of not more than three
years.
Following the announcement, several Malaysian banks said they
would not be compounding interest for their customers during
the six-month moratorium period. RHB Banking Group, Public
Bank Bhd, Malayan Banking Bhd (Maybank), CIMB Bank Bhd,
OCBC Bank (M) Bhd, HSBC Malaysia, AmBank Group, Affin
Bank Bhd, United Overseas Bank (Malaysia) Bhd and Citi
Malaysia were among those banks offering non-compounded
interest for retail customers and small and medium-sized
enterprises.

3. Thailand
Banks in Thailand announced a coronavirus debt-relief package
in early March, offering companies a year-long grace period to
repay their loans.
The package came in tandem with state relief measures, and the
grace period on loan repayments applied to companies in the
tourism sector, exporters, importers and retailers, the Nikkei
Asian Review reported.
Britain
Several banks in Britain have offered repayment holidays on
mortgages and loans in an effort to stem a potential tide of
defaults from borrowers affected by the coronavirus crisis.
Among those lenders were the Royal Bank of Scotland, Lloyds
and TSB, the Guardian reported early last month.
RBS Group, in which the British government has a majority
stake, said it would grant a three-month break on mortgage and
loan repayments for customers under strain due to the virus
situation. It also offered to temporarily raise affected customers'
credit card limits and scrap fees on credit card cash advances,
among other measures.
Italy
Italy announced in early March it would suspend all mortgage
repayments across the nation, as the country went under

4. lockdown to contain the coronavirus outbreak.
Italy's banking lobby group ABI said lenders would offer debt
holidays to small firms and families, BBC reported. It's not the
first time debt payments were halted in Italy. A similar relief
measure was granted to some small businesses and households
during the financial crisis.
Italian banks own the biggest pile of non-performing loans -
about 142 billion euros - among European Union countries,
according to a Bloomberg report. The Italian banking
association in February asked for a one-year suspension of rules
that force them to identify past-due loans as being in "default"
to free up more money for lending.
United States
As the coronavirus crisis worsens in the United States, the
country's two mortgage giants Fannie Mae and Freddie Mac
have instructed lenders to grant their customers more flexibility
in either lowering or halting home loan repayments for up to 12
months.
Their action effectively grants relief to half of all American
home loans, according to a Fortune.com report last week. Other
mortgage lenders across the country are expected to follow suit
in the coming weeks and months.
The Trump administration was also mulling a nation-wide plan
to let homeowners affected by the virus situation delay their
mortgage repayments, Bloomberg reported earlier last month.
But the government would have to decide on a mechanism for

5. borrowers to catch up with their postponed payments, as well as
to determine how to advance money to mortgage servicers so
that investors in mortgage-backed securities get their
guaranteed payments.
Canada
Canada's six biggest banks last month said they would allow
homeowners to delay their mortgage repayments for up to six
months, as part of a coronavirus-relief plan.
The lenders - Bank of Montreal, Bank of Nova Scotia, Canadian
Imperial Bank of Commerce, National Bank of Canada, Royal
Bank of Canada and Toronto-Dominion Bank - also offered
other debt relief measures including credit card repayment
deferrals and extensions on mortgages' amortisation periods, the
Financial Post reported. Borrowers were advised to reach out to
their banks to apply for the deferrals.
Borrowers in good standing who had been affected by the
pandemic could apply at any time, with deferrals available for
an indefinite period, Bloomberg reported. Under the plan,
payments are skipped for a period of time, and accrued interest
accrued is added to the mortgage's outstanding balance. The
additional interest is incorporated into future monthly payments
when they resume, or upon renewal at the end of the mortgage's
term.
base on the article above,

6. Question a) what impact would these strategies have on the
risks facing the bank. given that banks are suspending loan
repayment. be specific.
question b) how do the bank effectively ensure that they
monitor and screen the borrowers to prevent moral hazard and
adverse selection.
question c) using capital, character, collateral, capital and
condition, explain characteristics that a credit card is unique.
given that selected countries credit card are attracting speacial
treatment.
CID: Score: ______/94
Extrasolar Systems
The goal of this homework is to understand defining
characteristics of extrasolar systems and
planets.
1.0 Detection
1.1) (10pts) Astronomers primarily detect extrasolar planets two
ways: using the transit method,
and using the radial velocity method. What are the benefits and
constraints of both methods?
(Hint: what can we understand about the extrasolar system by
observing it directly/indirectly,
what can’t we understand?)

7. 1.2) (6pts) In the figure to the left, there is a planet whose
orbital period is 8 days. What would we expect the
Doppler shift spectrum to look like for this system?
Sketch your answer as simulated data points in the graph.
1.3) (4pts) Why wouldn’t we expect to discover an Earth-like
planet by observing a Doppler
shift? What are some of the characteristics of the planets
observed through this method?
2.0 Comparing Extrasolar Planets to our Own
2.1) (12pts) Describe the characteristics of our Solar System.
What are the planets like closer to
the Sun and farther from the Sun? Would you expect this to be a
“standard model” for solar
systems elsewhere in the galaxy? Why or why not?
CID: Score: ______/94
The figure to the left is a graph that plots the
eccentricity of a planet’s orbit versus the
orbital distance of the planet from its sun.
The red triangles represent exoplanets
Astronomers have discovered and the blue
squares are the planets around our Sun.
2.2) (6pts) How do the planets in our solar
system compare to the discovered extrasolar
planets? Are there any trends you see in the
figure above?
2.3) (8pts) Reread your two answers for 2.1 and 2.2. If you said
our Solar System could be a

8. “standard model” for other solar systems in the Milky Way, do
you still agree? Why or why not.
If you, from question 2.1, said our solar system cannot be a
standard model, how can you use the
figure above to support your argument?
CID: Score: ______/94
3.0 Extrasolar Jovian Planets
The figure to the left shows the number
of extrasolar planets according to their
Jupiter masses. For reference, 0 (on the
x-axis) equals the mass of Jupiter.
3.1) (12pts) What does the graph tell us
about the majority of extrasolar planets
that we have discovered? What are their
characteristics? What kinds of
exoplanets do astronomers search for?
What can be concluded from the data in
the chart to the right?
3.2) (6pts) Do you think the graph above gives Astronomers a
good idea of what the majority of
extrasolar planets are like? Why or why not?
3.3) (10pts) Do you believe the planets in extrasolar systems are
mostly Jovian planets or do you
think they are just easier to detect? Do you think our solar
system is unique for having terrestrial
planets, why or why not? What are the complications in finding
terrestrial planets, specifically
ones that could be habitable?

9. CID: Score: ______/94
4.0 Extrasolar
Systems’
Orbitals
The adjacent figure
above the orbits of the
planets in our solar
system
4.1) (8pts) What are the defining factors of the planets’ orbitals
in our Solar System? Do most of
them lie on a similar plane? How about the orientation of the
planet’s inclination to the sun?
Would you expect most extrasolar orbits to be the same? Why
or why not?
4.2) (12pts)The figure above shows three identical planets that
orbit their sun at different
inclinations, for A, B, and C. The orbital plane of each planet is
marked with a horizontal grey
bar. Draw out the Doppler shift spectrum (similar to question 1)
that we would receive from this
exoplanet.