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    Caiib-Bfm-Case Studies: Dedicated To The Young and Energetic Force of Bankers

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    The document provides information on calculating capital adequacy ratios for two banks based on given details of tier 1 capital, tier 2 capital, and risk weighted assets. For the first bank, it calculates the total risk weighted assets at Rs. 60,000 cr with a CAR of 8%, and the tier 1, tier 2, and total capital adequacy ratios. For the second bank, it similarly calculates the total risk weighted assets, tier 1 ratio, and total capital ratio based on the given information.

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    Caiib-Bfm-Case Studies: Dedicated To The Young and Energetic Force of Bankers

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    312 views2 pages
    The document provides information on calculating capital adequacy ratios for two banks based on given details of tier 1 capital, tier 2 capital, and risk weighted assets. For the first bank, it calculates the total risk weighted assets at Rs. 60,000 cr with a CAR of 8%, and the tier 1, tier 2, and total capital adequacy ratios. For the second bank, it similarly calculates the total risk weighted assets, tier 1 ratio, and total capital ratio based on the given information.

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    The document provides information on calculating capital adequacy ratios for two banks based on given details of tier 1 capital, tier 2 capital, and risk weighted assets. For the first bank, it calculates the total risk weighted assets at Rs. 60,000 cr with a CAR of 8%, and the tier 1, tier 2, and total capital adequacy ratios. For the second bank, it similarly calculates the total risk weighted assets, tier 1 ratio, and total capital ratio based on the given information.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    312 views2 pages

    Caiib-Bfm-Case Studies: Dedicated To The Young and Energetic Force of Bankers

    Uploaded by

    ssss
    The document provides information on calculating capital adequacy ratios for two banks based on given details of tier 1 capital, tier 2 capital, and risk weighted assets. For the first bank, it calculates the total risk weighted assets at Rs. 60,000 cr with a CAR of 8%, and the tier 1, tier 2, and total capital adequacy ratios. For the second bank, it similarly calculates the total risk weighted assets, tier 1 ratio, and total capital ratio based on the given information.

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    4/28/2019 Free Mock Test for JAIIB & CAIIB

    Dedicated to the Young and Energetic Force of Bankers Sign In/Sign Out

    WELCOME WEBSITES

    ABM-Case Studies CAIIB-BFM-CASE STUDIES Bank Promotion exa


    ABM-Recollected Only for Bankers
    ABM-Last Minute RBI
    BFM-Case Studies ABC Bank has provided following details : IIBF
    BFM-Recollected IRDA
    1- Tier 1 Capital = Rs.4500cr
    BFM-Last Minute 2- Tier 2 Capital = Rs.4000cr. SEBI
    Important Circulars 3- Capital charge for market credit risk = Rs.2400cr BCSBI
    Master Circulars 4- Capital charge for market risk = Rs.1600cr CIBIL
    Bank DA Rates 5- Capital charge for operational risk = Rs.800cr Banking and Insura
    Bank Holidays Ministry of Finance
    Life Ins Companies 1) Based on the given information, please calculate the amount of total risk weighted assets, if the CAR is 8%; Excise & Customs
    List of PSBs Income Tax Departm
    List of Private Banks Total risk weighted assets = RWA for credit risk + RWA for market risk + RWA for opperational risk NSE
    List of Foreign Banks BSE
    = 2400/0.08 + 1600/0.08 + 800/0.08 = 30000 + 20000 + 10000 = 60000 cr

    2) Based on the given information, please calculate the amount of Tier 1 Capital adequacy ratio of the bank

    Total risk weighted assets = RWA for credit risk + RWA for market risk + RWA for opperational risk
    = 2400/0.08 + 1600/0.08 + 800/0.08 = 30000 + 20000 + 10000 = 60000 cr

    Tier 1 Capital = 4500

    Tier 1 Capital adequacy ratio = Eligible Tier 1/Total RWA = 4500/60000 = 7.5%

    3) Based on the given information, please calculate the amount of Tier 2 Capital adequacy ratio of the bank

    Total risk weighted assets = RWA for credit risk + RWA for market risk + RWA for opperational risk
    = 2400/0.08 + 1600/0.08 + 800/0.08 = 30000 + 20000 + 10000 = 60000 cr

    Tier 2 Capital = 4000

    Tier 2 Capital adequacy ratio = Eligible Tier 2/Total RWA = 4000/60000 = 6.66%

    4) Based on the given information, please calculate the total Capital to risk assets ratio;

    Total risk weighted assets = RWA for credit risk + RWA for market risk + RWA for opperational risk
    = 2400/0.08 + 1600/0.08 + 800/0.08 = 30000 + 20000 + 10000 = 60000 cr

    Tier 1 Capital = 4500


    Tier 2 Capital = 4000
    Total = 8500

    Total Capital to risk assets ratio = Eligible total capital fund / Total RWA = 8500/60000 = 14.17%

    -------------------------------------------------

    ABC Bank has provided following details :

    1- Tier 1 Capital = Rs.2000cr


    2- Tier 2 Capital = Rs.2400cr.
    3- Risk weighted assets for credit risk = Rs.20000cr
    4- Capital charge for market risk = Rs.1000cr
    5- Capital charge for operational risk = Rs.600cr

    1) Based on the given information, please calculate the amount of total risk weighted assets, if the CAR is 9%;

    Total risk weighted assets = RWA for credit risk + RWA for market risk + RWA for opperational risk

    = 20000 + 1000/0.09 + 600/0.09 = 20000 + 11112 + 6667 = 37779cr.

    2) Based on the given information, please calculate the amount of Tier 1 Capital adequacy ratio of the bank

    Total risk weighted assets = RWA for credit risk + RWA for market risk + RWA for opperational risk
    = 20000 + 1000 /0.09 + 600 / 0.09 =20000 + 11112 + 6667 = 37779cr

    Tier 1 Capital = 2000


    Tier 2 Capital = 2400

    jaiibcaiibmocktest.com/bfm-lmr9.php 1/2
    4/28/2019 Free Mock Test for JAIIB & CAIIB
    Total = 4000 (Tier 2 cannot be Tier 1)

    Tier 1 Capital adequacy ratio = Eligible Tier 1/Total RWA = 2000/37779 = 5.29%

    3) Based on the given information, please calculate the total Capital to risk assets ratio;

    Total risk weighted assets = RWA for credit risk + RWA for market risk + RWA for opperational risk
    = 20000 + 1000 /0.09 + 600 / 0.09 =20000 + 11112 + 6667 = 37779cr

    Tier 1 Capital = 2000


    Tier 2 Capital = 2400
    Total = 4000 (Tier 2 cannot be Tier 1.Hence maximum it can be taken is 2000cr).

    Total Capital to risk assets ratio = Eligible total capital fund / Total RWA = 4000/37779 = 10.59%

    ……………………………………………………………………………………………………………………………………………

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