In reference to Basel Accord minimum bank capital adequacy requirements, risk-weighted assetsMultiple Choicerefers to traditional bank loans.refers to a "risk-focused" approach to determining adequate bank capital.provides a level of confidence measure of the probability of the maximum loss that can occur during a period of time.none of the options.

Basel II requires that at least half of the risk-based capital ratio must take Tier 1 capital that is at least 4.5%. Question 5Select one:TrueFalse

In the standardised approach of estimating credit risk in Pillar 1 of Basel III, banks:Question 4Select one:a.provides its own estimates for all credit risk items.b.estimate its own probability of default and effective maturity, while regulator-defined estimates for other credit risk components are used.c.provides its own estimates for all interest rate risk items.d.assign each balance sheet assets and each off-balance sheet item a risk weight that is derived from either an approved external ratings agency or a weight specified by the regulator.

What was the primary focus of Basel I?  A. Market risk  B. Operational risk  C. Credit risk  D. Liquidity risk

What is the primary goal of Banking Regulatory Norms related to capital requirements?To ensure banks can meet their obligations and absorb lossesTo ensure maximum profitability for banksTo promote international tradeTo drive competition among banks

Single choice8)A bank's capital ratio is calculated by which of the following formulas?Risk-weighted assets/bank capitalBank capital/ total assetsBank capital/risk-weighted assets