Case Studies
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary purpose of case study analysis in CAIIB Advanced Bank Management?
Case study analysis develops a banker's ability to apply theoretical concepts to real-world banking scenarios, integrating risk management, credit appraisal, and strategic decision-making skills.
In a bank liquidity crisis case study, what does the Liquidity Coverage Ratio (LCR) measure?
High-quality liquid assets to cover 30-day net cash outflows.
In a case study involving NPA classification, when does a loan account become a Non-Performing Asset?
A loan account becomes an NPA when interest or principal remains overdue for more than 90 days in respect of a term loan, or the account remains 'out of order' for 90 days in case of a cash credit or overdraft.
What is the Net Stable Funding Ratio (NSFR) designed to address in bank risk management case studies?
Long-term funding stability over a one-year horizon.
How is the Debt Service Coverage Ratio (DSCR) calculated in a project appraisal case study?
DSCR is calculated as Net Cash Accrual (Net Profit after tax + Depreciation) divided by Debt Service (Principal repayment + Interest on term loan); a ratio above 1.5 is generally considered satisfactory by banks.
In a credit appraisal case study, what does the Debt-Equity Ratio indicate about a borrower?
Proportion of debt financing relative to owner's equity.
What is the significance of the Current Ratio in working capital assessment case studies?
The Current Ratio (Current Assets divided by Current Liabilities) measures short-term liquidity; a ratio of 1.33:1 is the minimum benchmark prescribed by banks following Tandon Committee norms for working capital financing.
How is the concept of 'Stressed VaR' applied in a market risk case study for banks?
VaR calculated using historical data from a stressed financial period.
Video classes for this chapter
Balance Sheet Analysis 2
Balance Sheet Analysis 3
Case Study on Credit Default Swap
Balance Sheet Analysis
Case Study on Credit management
Case Study on HRM
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