Operational Aspects of Loan Accounts
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 54 rapid-fire Q&A cards.
Marginal Cost of Funds?
(a) Marginal cost of borrowing × 92 % + (b) Return on net worth × 8 %
Negative Carry on CRR?
Cost of holding zero-return CRR balances
Operating Costs?
All costs associated with providing the loan product (excluding those covered under other components)
Tenor Premium?
Charge for the longer tenor of the loan commitment
Single counterparty?
20 % of eligible capital base (boards may approve +5 % = max 25 % in exceptional cases)
Group of connected counterparties?
25 % of eligible capital base
Single NBFC (excluding gold-loan companies)?
20 % of eligible capital base
Single G-SIB to single G-SIB?
15 % of eligible capital base
PDF study notes
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