Question

    What is SREP in banking supervision?

    A Listed companies are mandatorily required to publish their financial results on quarterly basis Correct Answer Incorrect Answer
    B Grading of IPOs by the rating agencies is an option with issuers Correct Answer Incorrect Answer
    C “Circuit Breakers” check speculative over-trading Correct Answer Incorrect Answer
    D Supervisory Review and Evaluation Process Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Supervisory Review Process under Second Pillar of Basel II 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 RBI.

    Practice Next

    Relevant for Exams: