Risks in Banking Business
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.
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What is the additional run-off rate on retail deposits via internet/mobile banking under revised RBI LCR framework effective April 1, 2026?
2.5% additional run-off rate on retail and small-business deposits through internet and mobile banking channels.
When does Basel III Standardised Approach for Credit Risk become effective for Scheduled Commercial Banks under RBI?
April 1, 2027 under RBI (Commercial Banks — Capital Charge for Credit Risk — Standardised Approach) Directions, 2026.
Which bank categories are EXEMPT from Basel III Standardised Approach for Credit Risk effective April 1, 2027?
SFBs, Payment Banks, and RRBs are excluded from the framework.
What ILM value applies to banks with Business Indicator below ₹8,000 crore under Operational Risk SMA?
ILM is set to 1 for banks below ₹8,000 crore Business Indicator or with inadequate loss data.
Define Funding Risk in liquidity risk taxonomy with deposit rollover example.
Funding Risk: inability to replace net outflows due to non-renewal/withdrawal of deposits at acceptable cost.
How does Forex MTM loss differ from MCLR reset gain in risk treatment?
Forex MTM loss is Market Risk flowing through P&L; MCLR reset gain flows through NII/Banking Book accrual.
What TWO simultaneous risks crystallise when capital controls prevent LC payment?
Country Risk (Credit Risk sub-type) and Call Risk (Liquidity Risk sub-type) both materialise.
What is combined minimum CET1 requirement for Bucket 1 D-SIB excluding CCyB under RBI Basel III (May 2026)?
8.20%: 4.50% Pillar 1 + 2.50% CCB + 1.20% D-SIB surcharge.
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