Caselets

You receive a loan proposal and when you calculate the scores according to the business risk model, you get a score less than 6. What would be your next action?

• Use your intuition and sanction/reject the loan

• Refer the loan proposal to the next higher authority

• Insist on an additional collateral

• Charge a higher rate of interest

Your bank is wanting to implement BASEL III norms. Which of these has to be adhered to?

• Capital conservation buffer of 2.5% above the regular CRAR

• Counter cyclical buffer of 2%

• Capital conservation buffer of 2.5% and counter cyclical buffer of 2%

• Capital conservation buffer and counter cyclical buffer

You are tasked with calculating the risk weighted assets for off-balance sheet exposures. Which of the following would you use to help you with it?

• Capital conversion factor

• Credit conversion factor

• Credit conservation factor

• Conservation credit factor

You have a scheduled meeting with the bank's empaneled advocate who has been asked to ascertain the encumbrance of a property and also ascertain the title of the property. Which of the following situations are deviated from the requirement of the bank?

• The encumbrance was searched for the past 12 years

• The title of the deed was traced for the past 30 years

• It certifies the clear, unencumbered and marketable title to the property

• The revenue tax receipt, utility bills etc were found missing

You have gone for a stock inspection to a firm. Which of the following would be treated as an EWS?

• Under-insured inventory

• Over-insured inventory

• Stock statement is 35 days old

• The invoices did not have the necessary TAN details