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    Question

    A bank has a funded loan exposure of ₹80 crore

    carrying 100% risk weight. It has also issued a bank guarantee of ₹40 crore with credit conversion factor of 50% and risk weight of 100%. What is the total Risk Weighted Asset?
    A ₹80 crore Correct Answer Incorrect Answer
    B ₹100 crore Correct Answer Incorrect Answer
    C ₹120 crore Correct Answer Incorrect Answer
    D ₹140 crore Correct Answer Incorrect Answer
    E ₹160 crore Correct Answer Incorrect Answer

    Solution

    RWA = 80 + (40 × 50%) = 100.

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