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NABARD Grade A Basel Norms & Capital — practice questions — page 2

Explore 70 free Basel Norms & Capital questions in NABARD Grade A 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 31–60 of 70.

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 →Sort each item by how it is treatedRead the answer and worked solution →Spot the one that does not fitRead the answer and worked solution →Pick the right answer, quicklyRead the answer and worked solution →The Basel capital adequacy framework rests on how many pillars?Read the answer and worked solution →Pillar 1 of the Basel framework deals with:Read the answer and worked solution →Pillar 2 of the Basel framework is the:Read the answer and worked solution →Pillar 3 of the Basel framework is:Read the answer and worked solution →The minimum total capital to risk weighted assets ratio is:Read the answer and worked solution →The minimum Common Equity Tier 1 ratio is:Read the answer and worked solution →The minimum Tier 1 capital ratio is:Read the answer and worked solution →Additional Tier 1 capital may be admitted at most up to:Read the answer and worked solution →Tier 2 capital may be admitted at most up to:Read the answer and worked solution →The Capital Conservation Buffer is fixed at:Read the answer and worked solution →The Capital Conservation Buffer must be held in the form of:Read the answer and worked solution →Minimum CET1 plus the conservation buffer comes to:Read the answer and worked solution →Minimum total capital plus the conservation buffer comes to:Read the answer and worked solution →Regulatory capital under these Directions is made up of:Read the answer and worked solution →A wholly owned subsidiary of a foreign bank must hold, for three years:Read the answer and worked solution →A capital shortfall in an unconsolidated subsidiary is deducted from:Read the answer and worked solution →Banks of high systemic importance are designated as:Read the answer and worked solution →How often does the Reserve Bank disclose the list of D-SIBs?Read the answer and worked solution →Which is a D-SIB indicator used by the Reserve Bank?Read the answer and worked solution →The extra capital charge on a D-SIB must be held as:Read the answer and worked solution →The Capital Conservation Buffer applies at the solo level and the:Read the answer and worked solution →Revaluation reserves rejected from CET1 capital may be counted in:Read the answer and worked solution →

Worked practice questions

Tier I capital or Tier II capital?

Read exercise and reference answers
Left
Tier I
Items
  1. Item
    Free reserves
    Answer
    Tier I
  2. Item
    PNCPS shares
    Answer
    Tier I
  3. Item
    Perpetual debt
    Answer
    Tier I
  4. Item
    General provision
    Answer
    Tier II
  5. Item
    Upper Tier II bond
    Answer
    Tier II
  6. Item
    IFR balance
    Answer
    Tier II
  7. Item
    PCPS shares
    Answer
    Tier II
  8. Item
    Charged fund
    Answer
    Tier II
Right
Tier II
Instructions
Swipe left for Tier I, right for Tier II.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_

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Match each rule to its ceiling

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Matching pairs
  1. Left
    Tier II vs Tier I
    Right
    Capped at 100 per cent
  2. Left
    General provision
    Right
    Capped at 1.25 pc of RWA
  3. Left
    PNCPS plus PDI
    Right
    Capped at 35 pc of Tier I
  4. Left
    PDI alone
    Right
    Capped at 15 pc of Tier I
  5. Left
    Revalued property
    Right
    Taken at 55 pc discount
  6. Left
    Tier II share life
    Right
    At least ten years
Instructions
Tap a rule on the left, then tap its limit.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_

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True or false about bank capital

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Questions
  1. Statement is true
    Yes
    Statement
    A Tier 1 co-operative bank needs 9 per cent CRAR.
  2. Statement is true
    No
    Statement
    Tier II may be twice the size of Tier I.
  3. Statement is true
    Yes
    Statement
    Intangible assets are deducted from Tier I.
  4. Statement is true
    No
    Statement
    Floating provisions can serve two purposes at once.
  5. Statement is true
    No
    Statement
    PDI ranks above depositors on a claim.
  6. Statement is true
    Yes
    Statement
    A bond under a year to run is discounted fully.
Instructions
Decide whether each statement is true or false.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_

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