Question
Which among the following is NOT a constituent ofÂ
Tier-II capital of banks according to BASEL Accord?Solution
Tier 2 capital must be at least 2% of RWAs on an ongoing basis. Tier 2 Capital: represents “supplementary capital” such as undisclosed reserves, revaluation reserves, general loan-loss reserves, hybrid (debt/equity) capital instruments, and subordinated debt of the financial institution. Tier 2 Capital is generally less reliable or secure than Tier 1 capital, and therefore must be considered separately when evaluating the riskiness of a bank. Capital reserve is a disclosed reserve and forms a part of the Tier I capital of the bank.
Which of the following is a window for the banks to borrow from RBI in an emergency when inter-bank liquidity dries up completely.
Which of the following correctly defines Yield to maturity (YTM)?
Which of the following does not contribute to credit risk?​
Which institution refinances RRBs and Cooperative Banks?​
Which bank was the first to be established specifically to cater to rural credit in India?​
What is meant by a “zero-sum game” in the context of forward contracts?​
The main objective of RRBs is to provide credit to:​
Expand CAMELS as one of the rating systems used by RBI
What is the risk weight of cash while calculating Risk Weighted Assets (RWA)?​
Export Credit Guarantee Corporation of India comes under the administrative control of ______________.
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