CAIIB · CB · Chapter 5

Liquidity Management Framework - LAF, OMO, MSS, Operation Twist

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.

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One-liners from this chapter

Free sample — 8 of 61 rapid-fire Q&A cards.

Q

Threshold 1?

A

CRAR ≤ Reg. min. (say 15%) but ≥ 12%; Tier-1 ≤ Reg. min. but ≥ 8%; Net NPA > 6% but ≤ 9%.

Q

Threshold 2?

A

CRAR < 12% but ≥ 9%; Tier-1 < 8% but ≥ 5%; Net NPA > 9% but ≤ 12%.

Q

Threshold 3?

A

CRAR < 9%; Tier-1 < 5%; Net NPA > 12%.

Q

CRAR — Risk Threshold 1 / Risk Threshold 2 / Risk Threshold 3?

A

Risk Threshold 1: < 10.875% but ≥ 8.625%; Risk Threshold 2: < 8.625% but ≥ 7.125%; Risk Threshold 3: < 7.125%

Q

CET1 ratio — Risk Threshold 1 / Risk Threshold 2 / Risk Threshold 3?

A

Risk Threshold 1: < 7.375% but ≥ 5.125%; Risk Threshold 2: < 5.125% but ≥ 3.625%; Risk Threshold 3: < 3.625%

Q

Net NPA Ratio — Risk Threshold 1 / Risk Threshold 2 / Risk Threshold 3?

A

Risk Threshold 1: ≥ 6% but < 9%; Risk Threshold 2: ≥ 9% but < 12%; Risk Threshold 3: ≥ 12%

Q

Tier 1 Leverage Ratio — Risk Threshold 1 / Risk Threshold 2 / Risk Threshold 3?

A

Risk Threshold 1: < 4% but ≥ 3.5%; Risk Threshold 2: < 3.5% but ≥ 3%; Risk Threshold 3: < 3%

Q

(True/False) The Banking Regulation Act was originally enacted as the Banking Companies Act, 1949 and renamed BR Act on extension to co-operative banks in 1966?

A

TRUE

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