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IBPS Clerk Basel Norms & Capital — practice questions

Explore 65 free Basel Norms & Capital questions in IBPS Clerk Banking Awareness. Open each question or exercise to read its content, reference answers and available explanation.

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Basel Norms & Capital questions and exercises with answers

Showing questions 1–30 of 65.

The minimum CRAR for banks in India under Basel III is:Read the answer and worked solution →CRAR stands for capital to risk weighted assets:Read the answer and worked solution →A Tier 1 urban co-operative bank must hold a minimum CRAR of:Read the answer and worked solution →Urban co-operative banks in Tier 2 to 4 must hold a CRAR of:Read the answer and worked solution →Banks phasing in the higher CRAR had to reach 11 per cent by:Read the answer and worked solution →Eligible total capital is made up of Tier I capital and:Read the answer and worked solution →Tier II capital counted for CRAR may not exceed what share of Tier I?Read the answer and worked solution →Reserves created to meet outside liabilities are treated how in Tier I?Read the answer and worked solution →Revaluation reserves may be counted in Tier I at a discount of:Read the answer and worked solution →Which item is deducted from Tier I capital?Read the answer and worked solution →General provisions may be counted in Tier II up to what share of RWA?Read the answer and worked solution →Floating provisions may be used for netting gross NPAs or Tier II but:Read the answer and worked solution →Excess specific provision on an NPA is treated how for Tier II?Read the answer and worked solution →Which reserve is eligible for inclusion in Tier II capital?Read the answer and worked solution →Which instrument is eligible for Tier I capital?Read the answer and worked solution →PNCPS and PDI together may not exceed what share of Tier I capital?Read the answer and worked solution →Perpetual debt instruments alone may form what share of Tier I?Read the answer and worked solution →Claims of PDI investors rank below those of depositors and:Read the answer and worked solution →Upper Tier II preference shares must have a minimum maturity of:Read the answer and worked solution →Redeemable preference shares are discounted over the last:Read the answer and worked solution →A bond with less than one year to run is discounted by:Read the answer and worked solution →A bond with four to five years to run is discounted by:Read the answer and worked solution →For a fund to count in Tier I it must be created out of:Read the answer and worked solution →A fund made by charging profit rather than appropriating it counts as:Read the answer and worked solution →Provisions for diminution in fair value of restructured accounts are:Read the answer and worked solution →Tier I capital or Tier II capital?Read the answer and worked solution →Match each rule to its ceilingRead the answer and worked solution →True or false about bank capitalRead the answer and worked solution →Order the discount as a bond maturesRead the answer and worked solution →Fill the gaps in the capital rulesRead the answer and worked solution →

Worked practice questions

The minimum CRAR for banks in India under Basel III is:

  1. 8%
  2. 6%
  3. 9%
  4. 12%
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Correct answer: C. 9%

1. The question asks: The minimum CRAR for banks in India under Basel III is. 2. Correct answer: 9%. 3. RBI requires a minimum Capital to Risk-weighted Assets Ratio of 9%. _Source: BOI Quick Revision — General Banking & Financial Awareness (2020), Basel III_

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CRAR stands for capital to risk weighted assets:

  1. Ratio
  2. Return
  3. Rating
  4. Reserve
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Correct answer: A. Ratio

1. The measure sets capital against risk weighted assets. 2. It is expressed as a proportion of those assets. 3. The final word is ratio. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_

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A Tier 1 urban co-operative bank must hold a minimum CRAR of:

  1. 7 per cent
  2. 9 per cent
  3. 3 per cent
  4. 5 per cent
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Correct answer: B. 9 per cent

1. The floor is set against risk weighted assets. 2. It must be met on an ongoing basis. 3. For a Tier 1 bank the floor is 9 per cent. _Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_

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