JAIIB · RBWM · Chapter 7

Digitisation of Retail Banking Products

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.

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One-liners from this chapter

Free sample — 8 of 37 rapid-fire Q&A cards.

Q

Credit Risk — What It Captures / Example?

A

What It Captures: Borrower fails to repay loan/obligation; Example: Default on home loan

Q

Business Risk — What It Captures / Example?

A

What It Captures: Loss in profitability/value due to operational or strategic factors; Example: Wrong product launch

Q

Market Risk — What It Captures / Example?

A

What It Captures: Loss from price/external-factor fluctuations; Example: Bond price falls on rate hike

Q

Operating Risk — What It Captures / Example?

A

What It Captures: Loss from process/technology failure, fraud, weak internal controls; Example: Cyber-fraud, system outage

Q

750–900 — Interpretation / Lender Action?

A

Interpretation: Excellent; Lender Action: Quick approval, best rates

Q

700–749 — Interpretation / Lender Action?

A

Interpretation: Good; Lender Action: Approval, average rates

Q

650–699 — Interpretation / Lender Action?

A

Interpretation: Fair; Lender Action: Conditional approval

Q

550–649 — Interpretation / Lender Action?

A

Interpretation: Poor; Lender Action: Likely rejection / high rate

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