WorksheetsCapital and credit - Introduction and context
Total questions: 8
Worksheet time: 3mins
A reduction in the value of assets of a bank might be caused by (choose incorrect answer)
worsening of the credit quality of customers
plunging share prices in portfolio
increase in the total bonds issued
a fall in commodity prices
Capital might be understoood as the buffer to absorb losses without compromising the survival of the entity
True
False
With a low leveraged financial system the liquitidty claim production is better met
True
False
There are three different types of capital depending on their complexity of calculation and risk sensitivity
Accounting, international and economic capital
Accounting, regulatory and economic capital
Accounting, regulatory and adjusted capital
Accounting, regulatory and buffer capital
Provisions are not...
A business cost
Present in the P&L
A regulatory risk measure
An average value of losses
The Basilea Committee on Banking Supervision was created in 1944 alongisde the IMF
True
False
The Basilea standards are binding for all members of the committee
True
False
The 3 Pillars of BIS II are
Minimum capital requirements, supervisory process and market discipline
Credit risk capital requirements, supervisory process and market discipline
Credit risk capital requirements, capital compliance and market discipline
Minimum capital requirements, supervisory process and stress test
