True or false about Basel capital

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   The minimum CRAR for a bank is 9 per cent.

2. Statement is true

   No

   Statement

   The conservation buffer is held as Tier 2.

3. Statement is true

   Yes

   Statement

   Tier 2 may fill at most 2 per cent of RWAs.

4. Statement is true

   No

   Statement

   D-SIB names are published every five years.

5. Statement is true

   Yes

   Statement

   A D-SIB surcharge is held as CET1 capital.

6. Statement is true

   Yes

   Statement

   Excess CET1 can count towards Tier 1.

Instructions

Decide whether each statement is true or false.

Explanation