BASEL

Q1. RBI implemented the Basel-III recommendations in India w.e.f:______

A. 01.01.2013
B. 01.04.2013
C. 31.03.2013
D. 30.09.2013

Q2. As per Basel-III requirements, modified by RBI during Sep 2014, banks can issue Tier-2 capital
instruments with a minimum original maturity of at least _____ years.

A. 2 Years
B. 3 Years
C. 5 Years
D. 10 Years

Q3. Basel III capital regulations are based on 3 mutually reinforcing pillar. These pillars are: (I.)
Minimum Capital Requirement, (II) Supervisory Review of Capital Adequacy (III) Risk Management

A. All the 3 are correct

B. Only I and II are correct
C. Only I and III are correct
D. Only II and III are correct

Q4. Basel III capital regulations were released by Basel Committee on Banking Supervision (BCBS) as a
Global Regulatory Framework for more resilient banks and banking systems on_________

A. December 2010
B. March 2011
C. December 2011
D. December 2012

Q5. The BASEL-I accord was released in which year:_______

A. 1991
B. 1998
C. 1988
D. 2004

Q6. In India, the banks are required to maintain a minimum pillar 1 capital to risk weighted assets ratio
(or minimum total capital to risk weighted assets ratio) of _____, as on _____ (other than capital
conservation buffer and countercyclical capital buffer)

A. 8 % , 31ST March each year

B. 9 %, 31st March each year
C. 8 %, ongoing basis
D. 9 %, ongoing basis

Q7.Under Pillar-2 of Basel-III, the banks are required to have a Board approved ICAAP and assess
capital accordingly. ICAAP stands for:_________

A. Internal Capital Adequacy Assessment Procedure

B. Internal Capital Approval Assessment Process
C. Internal Capital Adequacy Assessment Process
D. Internal Capital Assessment Approved Process

Q8. The implementation date of the Basel III standards has been deferred to _____ globally.

A. 1st January 2022

B. 1st April 2024
C. 1st January 2023
D. 1st April 2023
 BASEL
Q9. The banks in India are required to compute Basel-III capital ratios in the following manner

(1) Common Equity Tier-1 Capital Ratio

(2) Tier-1 Capital Ratio
(3) Tier-2 Capital Ratio
(4) Total Capital to Risk Weighted Asset Ratio
A. 1 to 4 all
B. 1, 2 and 3 only
C. 1, 2 and 4 only
D. 1 and 4 only

Q10. To Calculate Capital Adequacy Ratio, the banks are to take into account, which of the following
risk:

A. Credit Risk and Operational Risk only

B. Credit Risk and Market Risk only
C. Market Risk and Operational Risk
D. Credit Risk, Market Risk and Operational Risk

Q11. Which of the following statements regarding the Total Regulatory Capital under Basel-III is
correct:_____

A. Total Regulatory Capital is sum total of Tier-I Capital and Tier-2 Capital
B. Tier-1 Capital is called “going concern” Capital and Tier-2 Capital is called “gone capital”
C. Tier-1 Capital comprises common equity Tier-1 and additional Tier-1
D. All of the above

Q12. As per Basel-III implementation in India, Common Equity Tier-1 Capital must be ____ % of Risk
Weighted Assets on ongoing basis.

A. 5.5 %
B. 7%
C. 9%
D. 11 %

Q13. As per Basel-III implementation in India, minimum Tier-1 Capital must be ____ % of Risk
Weighted Assets on ongoing basis.

A. 5.5 %
B. 7%
C. 9%
D. 11 %

Q14. Foreign currency translation reserve arising due to translation of financial statements of Banks
foreign operations at a discount of _____% may be included in Tier-I capital.

A. 55 %
B. 75 %
C. 10 %
D. 25 %

Q15. The Net Stable Funding Ratio (NSFR) guidelines shall come into effect in India from ____

A. 01.04.2020
B. 01.04.2018
C. 01.04.2021
D. 01.10.2021

Q16. General Provisions or loan-loss reserves can be admitted as Tier 2 capital up to a maximum of
_____ % of the total credit risk-weighted assets under the standardized approach.

A. 1.25 %
 BASEL
B. 2.50 %
C. 4 %
D. None of the above

Q17. Debt Capital Instruments issued as bonds / debentures by Indian banks may be included as Tier-2
capital with a discount of _____ %, if the remaining maturity of these instruments is One year and
more but less than two years

A. 20 %
B. 60 %
C. 80 %
D. 40 %

Q18. As per BASEL-III, Banks are required to maintain minimum Net Stable Funding Ratio of_____

A. More than 100 %

B. More than 50 %
C. More than 200 %
D. More than 300 %

Q19. As per RBI guidelines the minimum Leverage Ratio shall be ____ % for Domestic Systemically
Important Banks (DSIBs) and ___ % for other banks in India

A. 3.5 % for DSIBs and 4 % for other Banks

B. 3 % for all Banks
C. 4 % for DSIBs and 3.5 % for Other Banks
D. 3.5 % for DSIBs and 4.5 % for Other Banks

Q20. Basel Committee on Banking Supervision (BCBS) had introduced Liquidity Coverage Ratio (LCR),
which requires banks to maintain High Quality Liquid Assets (HQLAs) to meet ____ day’s net outgo
under stressed conditions.

A. 90 Days
B. 60 Days
C. 45 Days
D. 30 Days

Q21. Under the Basic Indicator Approach, banks must hold capital for operational risk equal to ____ %
of the average over the previous three years positive annual gross income.

A. 25 %
B. 20 %
C. 15 %
D. 10 %

Q22. As per BASEL-III, Banks will be required to hold a capital conservation buffer (CCB) of ____ % of
Risk Weighted Assets consisting of Common Equity Tier-I capital that can be used to absorb losses
during periods of financial and economic stress.

A. 3.00 %
B. 2.50 %
C. 1.25 %
D. 4.00 %

Q23. Basic Indicator Approach is used for computation of capital requirement of which type of risk

A. Market Risk
B. Operational Risk
C. Credit Risk
D. Both Market and Credit Risk
 BASEL
Q24. Basel Committee on Banking Supervision (BCBS) released the Basel III norms in:

A. January 2010
B. December 2010
C. April 2013
D. April 2018

Q25. When BASEL-II guidelines were published in which year

A. 1988
B. 2000
C. 2004
D. 2010

Q26. Under BASEL-III, there is a provision of additional capital requirement to achieve the broader
macro-prudential goal of protecting the banking sector from periods of excess aggregate credit growth
is known as________

A. Capital Conservation Buffer

B. LCR
C. NSFR
D. Countercyclical Capital Buffer

Q27. As per BASEL-III guidelines what is the Credit Conversion Factor for short-term self-liquidating
letters of credit arising from the movement of goods (e.g. documentary credits collateralised by the
underlying shipment

A. 50% for both the issuing and confirming bank

B. 100% CCF will be applied to both the issuing and confirming bank
C. 50% for issuing Bank and 20% for confirming bank
D. 20% CCF will be applied to both the issuing and confirming bank

Q28. Under Basel-III, the risk of loss resulting from inadequate or failed internal processes, people and
systems or from external events is called:

A. Credit Risk
B. Operational Risk
C. Market Risk
D. Reputation Risk

Q29. As per Basel-III, which of the following is part of Operational Risk?

A. Legal Risk
B. Reputational Risk
C. Strategic Risk
D. All of the above

Q30. If a security has matured and remains unpaid, it attract capital for ____ risk on completion of 90
days delinquency period.

A. Credit Risk
B. Market Risk
C. Operational Risk
D. At Discretion of the Bank

Q31. The Capital Charge for specific risk under Market Risk will be ___ % or Capital Charge in
accordance with the risk warranted by external rating of the counterparty, whichever is higher, under
Basel-III

A. 9.00 %
B. 9.75 %
C. 10.50 %
 BASEL
D. 11.25 %

Q32. As per Basel-III, the value of revaluation reserve is to be taken at ____ % discount to include in
Tier-1 Capital

A. 60 %
B. 55 %
C. 50 %
D. 45 %

Q33. Under Basel-III, What is the risk weight for capital charge for credit risk on the basis of
standardized approach, for claims on Bank for International Settlements, IMF, and Multilateral
Development Banks?

A. 0%
B. 10 %
C. 20 %
D. 50 %

Q34. Under BASEL-III, the risk weight is ___ % for capital charge for credit risk on the basis of
standardized approach, for claims on banks incorporated in India and foreign bank branches in India,
where they meet the level of common equity Tier-1 Capital and applicable CCB

A. 0%
B. 10 %
C. 20 %
D. 50 %

Q35. Under Basel-III, the risk weight is ___ % for Capital Charge for Credit Risk on the basis of
Standardized Approach, for claims included in regulatory retail portfolio

A. 20 %
B. 50 %
C. 75 %
D. 100 %

Q36. For the purpose of calculation of capital charge for operational risk under basic indicator
approach, the gross income means: _____

A. Net Profit + Provisions and Contingences

B. Net Profit + Provisions and Contingences + Operating Expenses
C. Net Profit + Operating Expenses
D. Provisions and Contingences + Operating Expenses

Q37. As per Basel-III implementation, the risk weight for unsecured portion of NPA for credit risk as
per standardized approach is ___ % if the specific provisions is less than 20 % of the outstanding in
NPA Account

A. 150 %
B. 100 %
C. 75 %
D. 50 %

Q38. Under Basel III, the risk weight is ___ for capital charge for credit risk on the basis of
standardized approach for commercial real estate – residential housing

A. 20 %
B. 50 %
C. 75 %
D. 100 %
 BASEL
Q39. Under Basel-III, the risk weight for capital charge for credit risk on the basis of standardized
approach for exposure to commercial real estate

A. 20 %
B. 50 %
C. 75 %
D. 100 %

Q40. As per Basel-III implementation, the risk weight for unsecured portion of NPA for credit risk as
per standardized approach is ___ % if the specific provisions is atleast 20 % of the outstanding in NPA
Account

A. 150 %
B. 100 %
C. 75 %
D. 50 %

Q41. As per Basel-III implementation, the risk weight for unsecured portion of NPA for credit risk as
per standardized approach is ___ % if the specific provisions are at least 50 % of the outstanding in
NPA Account

A. 150 %
B. 100 %
C. 75 %
D. 50 %

Q42. Under Basel-III, the risk weight for capital charge for credit risk on the basis of standardized
approach for which of the following exposures, does not match:

A. Venture Capital – 150 %

B. Consumer Credit or Personal Loans – 100 %
C. Credit Cards – 125 %
D. Capital Market Exposure – 100 % (Ans: 125 %)

Q43. Under Basel-III, the risk weight for capital charge for credit risk on the basis of standardized
approach is ___ % for staff loans secured by superannuation benefits or mortgaged of flat/house

A. 20 %
B. 50 %
C. 75 %
D. 100 %

Q44. Under Basel-III, the risk weight for capital charge for credit risk on the basis of standardized
approach is ___ % for staff loans OTHER THAN secured by superannuation benefits or mortgaged of
flat/house, being eligible under regulatory retail portfolio

A. 20 %
B. 50 %
C. 75 %
D. 100 %

Q45. As per Basel-III, the risk of losses in On-balance sheet and Off-balance sheet positions arising
from movements in market prices is called _____

A. Credit Risk
B. Market Risk
C. Pricing Risk
D. Liquidity Risk
BASEL