CAIIB BFME Module B & C By Ashish Sir Class 7
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 supporting business goals.
What is the Basel III minimum Common Equity Tier 1 (CET1) ratio requirement?
Minimum CET1 ratio is 4.5% of risk-weighted assets.
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 1 Capital in the context of Basel III?
Tier 1 capital is going-concern capital absorbing losses while operating.
What is Credit Risk in the context of banking?
Credit risk is the risk of loss arising from a borrower's failure to repay a loan or meet contractual obligations, resulting in financial loss for the lender.
What is Tier 2 Capital under Basel III framework?
Tier 2 is gone-concern capital providing protection upon winding up.
How is Market Risk defined under Basel norms?
Market risk is the risk of losses in on- and off-balance-sheet positions arising from movements in market prices, including interest rates, equity prices, exchange rates, and commodity prices.
What is the minimum Total Capital Adequacy Ratio (CAR) required under Basel III?
Minimum Total CAR is 8% of risk-weighted assets.
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