1. SRP full form?
Ans- Supervisory Review Process
2. SRP objective?
Ans- i)bank should have adequate capital to support all the risks in their business
ii) to encourage banks to develop and use better risk management techniques for monitoring and maintaining their risks
3. ICAAP full form??
Ans- Internal Capital Adequacy Assessment Process
4. Risk aggregation in ICAAP implies..
a. Sum total of risks measured across various risks
b. Sum total of risks measured in terms of pillar 1 guidelines
c. Sum total of risks measured after accounting for risk diversification
d. assessment of bank's internal capital, capital adequacy assessment and strategy
Ans-c
5. Under SRP..
1. supervisors should review and evaluate bank's ICAAP
2. Banks must have capital for projected growth
3. Supervisors may advise banks to hold capital in excess of regulatory capital
a. 1 and 2 are true
b. 2 and 3 are true
c. 3 and 1 are true
d. all are true
Ans-c
6. ICAAP document of the bank may not contain..
a. Anticipated capital expenditure
b. monitoring system for complaince with internal policies
c. Strategic plan of the bank
d. All these may be included in ICAAP document
Ans- d
7. Principle of proportionality in ICAAP implies..
a. increasing capital as business increases
b. Apportioning of capital across various risk categories proportionally
c. Additional capital for risks not covered under pillar 1 guidelines in proportion to capital requirement assessed
d. Higher degree of sophistication in risk assessment methodolies as complexity of banking operation increases
Ans- d
8. ICAAP and SREP are two important components...
a. Minimum Capital requirements
b. Supervisory Review Process
c. Market Discipline
d. All the above
Ans- b
9. The ultimate responsibility for designing and implementation of ICAAP lies with..
a. Bank's board of directors
b. RBI
c. FEDAI
d. BCBG
Ans- a
10. Which of the following is not one of the three principles of Basel 2?
a. Minimum Capital requirements
b. Supervisory Review Process
c. Market Discipline
d. capital for market risks
Ans- d
11. Pillar -II supervisory review consists of...
a. evaluate risk Assessment
b. Ensure Soundness and Integrity of Bank's Internal process to assess the Capital Adequacy
c. Ensure maintenance of maximum capital with PCA for shortfall
d. Prescribe differential capital, where necessary i.e. where the internal process are slack
Ans- c
12. Under Supervisory Review process, a bank would be called "outlier" if the bank is under... basis point interest rate shock and faces reduction in capital by... % or more
a. 100,10
b. 100,20
c. 200,10
d. 200, 20
Ans- d
13. The Basel II revised framework consists of three mutually reinforcing pillars. out of the following which is not the reinforcing pillar?
a. Minimum Capital requirements
b. Supervisory Review Process
c. Market Discipline
d. None
Ans- d
14. Three pillars of Basel 2 are
a. Independent of each other
B. Complimentary
c. both a and b
Ans- b
15 The main purpose of the supervisory Review as per Basel II is:
a) To ensure that banks are profitable
b) To ensure that credit risk is adequately managed by banks
c) To ensure that banks have adequate capital to support all risks
d) To encourage banks to develop and use better management techniques
e) Both (c) & (d)
Ans-c
16. As per principle of supervisory review banks should have process for
a) assessing capital adequacy in relation to risk profile
b) strategy for maintaining capital levels
c) strategy for achieving profit targets
d) Both (a) & (b)
e) Both (b) & (c)
Ans-d
17.As per principle 2 of supervisory review, emphasis should be on quality of the risk
management and control which would involve:
a) On site inspection and off site review
b) Review of work done by Auditor
c) Discussions with Bank Management
d) Both (a) & (c) only
e) All of these
Ans- e
18. As per principle 3 of the Supervisory Review, banks should operate at
a. Minimum regulatory capital ratio
b. Above regulatory capital ratio
Ans-b
19. Under Supervisory Review, the supervisors are expected to concentrate on:
a) Risks not considered under Pillar I such as credit concentration Risk
b) Risks considered under Pillar but fully captured such as strategic risk or interest rate risk in the banking book
c) Factors external to the bank e.g. business cycle effects
d) All of these e) None of these
Ans- c
20. As per 2nd Pillar of Basel II when supervisors are expected to invervene?
a) regularly b) continuous basis c) yearly d) whenever necessary
Ans-d
21. As per Basel II, which of the following issues require focused attention of supervisors
a) Interest rate risk in the Banking Book
b) Operational Risk
c) Credit concentration risk
d) All of these
e) None of these
Ans-d
22. Supervisory review would not include:
a) Evaluating risk assessment of banks by RBI
b) Ensuring soundness and integrity of bank's internal processes to assess the adequacy of capital
c) Ensuring maintenance of minimum capital with prompt corrective action for shortfall
d) All of these e) None of these
Ans- e
Correct me for anything wrong. Share more qus in comment section.
Ans- Supervisory Review Process
2. SRP objective?
Ans- i)bank should have adequate capital to support all the risks in their business
ii) to encourage banks to develop and use better risk management techniques for monitoring and maintaining their risks
3. ICAAP full form??
Ans- Internal Capital Adequacy Assessment Process
4. Risk aggregation in ICAAP implies..
a. Sum total of risks measured across various risks
b. Sum total of risks measured in terms of pillar 1 guidelines
c. Sum total of risks measured after accounting for risk diversification
d. assessment of bank's internal capital, capital adequacy assessment and strategy
Ans-c
5. Under SRP..
1. supervisors should review and evaluate bank's ICAAP
2. Banks must have capital for projected growth
3. Supervisors may advise banks to hold capital in excess of regulatory capital
a. 1 and 2 are true
b. 2 and 3 are true
c. 3 and 1 are true
d. all are true
Ans-c
6. ICAAP document of the bank may not contain..
a. Anticipated capital expenditure
b. monitoring system for complaince with internal policies
c. Strategic plan of the bank
d. All these may be included in ICAAP document
Ans- d
7. Principle of proportionality in ICAAP implies..
a. increasing capital as business increases
b. Apportioning of capital across various risk categories proportionally
c. Additional capital for risks not covered under pillar 1 guidelines in proportion to capital requirement assessed
d. Higher degree of sophistication in risk assessment methodolies as complexity of banking operation increases
Ans- d
8. ICAAP and SREP are two important components...
a. Minimum Capital requirements
b. Supervisory Review Process
c. Market Discipline
d. All the above
Ans- b
9. The ultimate responsibility for designing and implementation of ICAAP lies with..
a. Bank's board of directors
b. RBI
c. FEDAI
d. BCBG
Ans- a
10. Which of the following is not one of the three principles of Basel 2?
a. Minimum Capital requirements
b. Supervisory Review Process
c. Market Discipline
d. capital for market risks
Ans- d
11. Pillar -II supervisory review consists of...
a. evaluate risk Assessment
b. Ensure Soundness and Integrity of Bank's Internal process to assess the Capital Adequacy
c. Ensure maintenance of maximum capital with PCA for shortfall
d. Prescribe differential capital, where necessary i.e. where the internal process are slack
Ans- c
12. Under Supervisory Review process, a bank would be called "outlier" if the bank is under... basis point interest rate shock and faces reduction in capital by... % or more
a. 100,10
b. 100,20
c. 200,10
d. 200, 20
Ans- d
13. The Basel II revised framework consists of three mutually reinforcing pillars. out of the following which is not the reinforcing pillar?
a. Minimum Capital requirements
b. Supervisory Review Process
c. Market Discipline
d. None
Ans- d
14. Three pillars of Basel 2 are
a. Independent of each other
B. Complimentary
c. both a and b
Ans- b
15 The main purpose of the supervisory Review as per Basel II is:
a) To ensure that banks are profitable
b) To ensure that credit risk is adequately managed by banks
c) To ensure that banks have adequate capital to support all risks
d) To encourage banks to develop and use better management techniques
e) Both (c) & (d)
Ans-c
16. As per principle of supervisory review banks should have process for
a) assessing capital adequacy in relation to risk profile
b) strategy for maintaining capital levels
c) strategy for achieving profit targets
d) Both (a) & (b)
e) Both (b) & (c)
Ans-d
17.As per principle 2 of supervisory review, emphasis should be on quality of the risk
management and control which would involve:
a) On site inspection and off site review
b) Review of work done by Auditor
c) Discussions with Bank Management
d) Both (a) & (c) only
e) All of these
Ans- e
18. As per principle 3 of the Supervisory Review, banks should operate at
a. Minimum regulatory capital ratio
b. Above regulatory capital ratio
Ans-b
19. Under Supervisory Review, the supervisors are expected to concentrate on:
a) Risks not considered under Pillar I such as credit concentration Risk
b) Risks considered under Pillar but fully captured such as strategic risk or interest rate risk in the banking book
c) Factors external to the bank e.g. business cycle effects
d) All of these e) None of these
Ans- c
20. As per 2nd Pillar of Basel II when supervisors are expected to invervene?
a) regularly b) continuous basis c) yearly d) whenever necessary
Ans-d
21. As per Basel II, which of the following issues require focused attention of supervisors
a) Interest rate risk in the Banking Book
b) Operational Risk
c) Credit concentration risk
d) All of these
e) None of these
Ans-d
22. Supervisory review would not include:
a) Evaluating risk assessment of banks by RBI
b) Ensuring soundness and integrity of bank's internal processes to assess the adequacy of capital
c) Ensuring maintenance of minimum capital with prompt corrective action for shortfall
d) All of these e) None of these
Ans- e
Correct me for anything wrong. Share more qus in comment section.
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