Regulatory Framework & Compliance

Pick the right order of the institution and year of establishment

• Bank for International Settlements - 1925

• RBI - 1935

• BASEL Committee - 1960

• BASEL Accord III - 1988

Capital Conservation Buffer is to be maintained at

• 2.5% above CRAR as part of Tier I capital

• 0.25% above CRAR as part of Tier I capital

• 2.5% above CRAR as part of overall capital

• 0.25% above CRAR as part of overall capital

Countercyclical capital buffer is

• An extension of capital conservation buffer

• To be maintained between 0-0.25% over and above capital conservation buffer

• An optional buffer to be maintained by the bank

• to be maintained to protect the banking sector from periods of excess credit growth

The implementation of BASEL III in India was completed in

• 2021

• 2019

• 2015

• 2023

RBI became a member of BIS in the year

• 2003

• 2013

• 2020

• 2023

Which among the following is the least risky of the assets in the bank?

• Cash

• Credit cards

• Exposure to capital markets

• Corporate loans

To address the liquidity risk, BASEL recommended a

• minimum liquidity ratio intended to provide enough cash to cover funding needs over a 30 day period of stress

• longer term ratio Net Stable Funding Ratio intended to address maturity mismatches over entire balance sheet

• capital conservation buffer above the CRAR

• counter-cyclical buffer above the CRAR and capital conservation buffer

Which of the following is NOT among the three pillars of BASEL II?

• Minimum capital requirements

• Supervisory review

• Market discipline

• Liquidity requirements

Which of the following is not a reason for the failure of BASEL I?

• Limited differentiation of risk

• Static measure of default risk

• Simplified calculation of potential future counterparty risk

• Mandating a very less CRAR

Find the false statement.

When compared to BASEL I and BASEL II, BASEL III

• increased the minimum capital requirements of banks

• focused on different types of risks in a systematic manner

• is less stricter

• will reduce the liquidity in banks