Round 01

Section 77 of the Banking Act No 30 of 1988 (as amended), requires the observance of strict secrecy in respect of all transactions of the bank, its customers and the state of accounts of any person and all matters relating thereto except in defined scenarios. In which of the following scenario is the bank not authorized under the Act to disclose information?

• When required to do so by a court of law

• When required to do so by the person to whom such matter relates

• When required to do so by a police order

• In order to comply with any written law

What is the minimum regulatorily stipulated frequency that a bank should review its integrated risk management framework?

• Every 6 months

• Every 12 months

• Every 18 months

• Every 24 months

Which of the following is not considered a Liquid Asset for purposes of calculating the Statutory Liquid Assets Ratio?

• 100% of investments in commercial paper

• Securities/bonds issued by Foreign Governments maturing within 1 year.

• Money at call in Sri Lanka

• Re-discountable value of treasury bills

Banks are required to disclose their credit ratings in all advertisements especially when soliciting deposits and other debt instruments. What is the regulatorily stipulated frequency in which ratings should be updated as a minimum?

• Every 6 months

• Every 12 months

• Every 18 months

• Every 24 months

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the prudential regulation of banks. It developed Basel III an internationally agreed set of measures to strengthen the regulation, supervision and risk management of banks in response to which highly publicized event?

• LIBOR benchmark scandal

• Financial crisis of 2007-09

• Substantial surge in fines and sanctions of banks due to poor risk management

• 1MDB

The Liquidity Coverage Ratio promotes the short-term resilience of a bank's liquidity risk profile. It does this by ensuring that a bank has an adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted into cash easily and immediately in private markets to meet its liquidity needs. What is the time horizon considered in this calculation?

• 15 calendar days

• 30 calendar days

• 45 calendar days

• 60 calendar days

The Central Bank of Sri Lanka having considered the importance of committing to achieving the Sustainable Development Goals of the United Nations and the need to transit towards a green, inclusive, and balanced economy in Sri Lanka, published the Road Map for Sustainable Finance in Sri Lanka in 2019 followed by Banking Act Directions in 2022. Which of the following is not identified as a priority sector to provide sustainable lending facilities to by licensed banks in the issued Directions?

• Sustainable agriculture, forestry development

• All forms of sustainable transport and storage

• All tourism and recreational activities

• Renewable energy projects

The Monetary Board issued Directions in relation to the Regulatory Framework on Technology Risk Management and Resilience in December 2021 specifying timelines for compliance. By what date are Licensed Banks required to comply with the Directions where extended timelines have not been specified?

• 31.12.2023

• 01.01.2024

• 31.12.2022

• 31.12.2024

Directions on Market Conduct and Practices for Treasury Operations require Authorised Personnel to not engage in manipulative or deceptive conduct which could give other market participants and the regulator a false or misleading impression of prevailing market conditions. Which of the following could be deployed by a bank to monitor market misconduct?

• Communication surveillance

• Trade surveillance

• Trading gains/losses review

• All of the above

In relation to prevailing Directions on Financial Derivative Transactions can an Eligible Bank enter into a Derivative Market Maker (DMM) Deal with a Foreign Counterparty?

• Yes

• No