CAIIB BFME Module B & C By Ashish Sir Class 11
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary objective of Risk Management in banks?
The primary objective is to identify, measure, monitor, and control risks to protect the bank's capital and earnings while enabling it to take calculated risks for profitability.
What is the Countercyclical Capital Buffer (CCyB) under Basel III?
Additional capital buffer of 0-2.5% to absorb losses during credit booms.
What are the three pillars of Basel II framework?
The three pillars are Minimum Capital Requirements (Pillar 1), Supervisory Review Process (Pillar 2), and Market Discipline through disclosure (Pillar 3).
What is Tier 2 Capital in the Basel framework?
Supplementary capital including subordinated debt and general loan loss reserves.
What does VaR (Value at Risk) measure in risk management?
VaR measures the maximum potential loss in the value of a portfolio over a defined time horizon at a given confidence level, typically 95% or 99%.
What is the Risk-Weighted Asset (RWA) concept in capital adequacy?
Assets weighted by credit risk to determine minimum required regulatory capital.
What is Credit Risk in the context of banking?
Credit Risk is the risk of loss arising from a borrower's failure to meet contractual obligations, including default on loan repayment of principal or interest.
What is the Advanced Measurement Approach (AMA) for Operational Risk?
Bank uses internal models and data to calculate operational risk capital charge.
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