CAIIB · ABM · Chapter 24

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Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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One-liners from this chapter

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Q

Direct Loan Default — Meaning / Example?

A

Meaning: Principal/interest not repaid on time.; Example: Ravi takes a ₹1 lakh loan but does not repay.

Q

Guarantees / LC Default — Meaning / Example?

A

Meaning: Guarantor fails to honour the obligation when the principal defaults.; Example: Sita guarantees her friend's loan; her friend defaults, and Sita too refuses to pay.

Q

Treasury Default — Meaning / Example?

A

Meaning: Contractual treasury payments are not made.; Example: A corporate agrees to buy USD forward but fails to pay on the value date.

Q

Securities Trading Default — Meaning / Example?

A

Meaning: Settlement of funds / securities is not done.; Example: Rahul sells shares but does not deliver them to the buyer on T+1.

Q

Cross-Border Default — Meaning / Example?

A

Meaning: Restrictions imposed on fund transfers across countries.; Example: An Indian firm cannot repatriate funds from its US subsidiary due to new sanctions.

Q

Standard Assets — Meaning / Example?

A

Meaning: Regularly paying loans (overdue ≤ 90 days).; Example: Ajay pays his EMI on time.

Q

Sub-Standard Assets — Meaning / Example?

A

Meaning: NPA for ≤ 12 months.; Example: A business loan unpaid for 6 months.

Q

Doubtful Assets — Meaning / Example?

A

Meaning: NPA for > 12 months.; Example: A housing loan defaulting for 13 months.

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