Question

    1.    Which of the following is correct regarding

    Supervisory review Process (SRP)? 1.    Supervisors should review and evaluate banks ICAAP 2.    Banks must have capital for projected growth 3.    Supervisors may advise banks to hold capital in excess of regulatory capital
    A 1 and 2 are true Correct Answer Incorrect Answer
    B 2 and 3 are true Correct Answer Incorrect Answer
    C 3 and 1 are true Correct Answer Incorrect Answer
    D All are true Correct Answer Incorrect Answer
    E None are true Correct Answer Incorrect Answer

    Solution

    Supervisory Review Process is basically intended to ensure that the banks have adequate capital to support all the risks associated in their businesses. As per RBI guidelines ICAAP or Internal Capital Adequacy Assessment Process is done by banks themselves while SREP or Supervisory Review and Evaluation Process is conducted by RBI.

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