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      Question

      When a bank calculates its Net Non-Performing Assets

      (Net NPAs), which of the following variables is directly deducted from the Gross NPAs?
      A Risk-Weighted Assets Correct Answer Incorrect Answer
      B Total Liquid Assets Correct Answer Incorrect Answer
      C Provisions held for NPAs Correct Answer Incorrect Answer
      D Capital Conservation Buffer Correct Answer Incorrect Answer
      E Accumulated Retained Profits Correct Answer Incorrect Answer

      Solution

      Net NPA is mathematically derived by taking the Gross NPA value and subtracting the specific provisions held against those non-performing loans.

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