In order to calculate capital adequacy ratio, the banks are required to take into consideration, which…
Under the Basel II and Basel III capital adequacy frameworks implemented by the Reserve Bank of India, commercial banks are required to compute their Capital to…
Choose your answer
In order to calculate capital adequacy ratio, the banks are required to take into consideration, which of the following risks?
I. Credit risk
II. Market risk
III. Operational risk
Answer and explanation
Correct answer D
Under the Basel II and Basel III capital adequacy frameworks implemented by the Reserve Bank of India, commercial banks are required to compute their Capital to Risk-Weighted Assets Ratio (CRAR) by factoring in capital charges for three distinct categories of risk: Credit Risk (I), Market Risk (II), and Operational Risk (III).
Practice for these exams
-
UGC NET Commerce