Question
Which of the following is/are correct regarding the
liquidity ratios under BASEL-III accord defined by Basel Committee on Banking Supervision (BCBS)? I. Liquidity Coverage Ratio measures adequate level of unencumbered, high-quality assets required by banks to cover short term liquidity stress. II. To mitigate liquidity mismatches in the longer term, banks are mandated to maintain a net stable funding ratio (NSFR) III. Liquidity Coverage Ratio needs to maintain to meet liquidity needs over 30-day horizon IV. Net stable funding ratio (NSFR) cannot be lower than 150%Solution
As per BASEL III Norms, Liquidity requirements: Basel III introduced two required liquidity ratios: · Liquidity Coverage Ratio (LCR) ensures that sufficient levels of high-quality liquid assets are available for one-month (short term) survival in a severe stress scenario. Liquidity Coverage Ratio (LCR) is designed to ensure that a bank maintains an adequate level of unencumbered, high-quality assets that can be converted into cash to meet its liquidity needs for a 30-day time horizon under an acute liquidity stress scenario. · Net Stable Funding Ratio (NSFR) promotes resilience over long-term time horizons by creating more incentives for financial institutions to fund their activities with more stable sources of funding on an ongoing structural basis. NSFR cannot be lower than 100%. The NSFR was designed to address liquidity mismatch.
A fruit seller has a certain number of apples of which 10% are rotten. He sells 91% of the remainder and then 405 apples are left. How many apples he bo...
A man invested all his current month income in starting of a new business in which he spends 30% in advertisement 15% of remaining in furniture 20% of r...
In a city, the number of persons travelling by bike is 70% the number of persons travelling by metro. The number of persons travelling on foot is 80% th...
- The income of 'X' is 25% more than that of 'Y'. 'X' and 'Y' save 30% and 15% of their incomes respectively. If the difference between their expenditures is...
A bag contains 400 coins of 25p denomination and 800 coins of 50p denominations. If 14% of 25p coins and 28% of 50p coins are removed, the percentage of...
Amit scored 80 marks in subject X. He scored 60% marks in subject B and Y marks in subject D. Maximum marks in each subject was 300. The overall percent...
Out of the total income of Amit, he spends 40% on food, 25% on rent and 20% on groceries. Out of the remaining income, he donates 15% in a charity and s...
A person gives 20% of his salary to his wife and 25% of the remaining to his children. Now he is left with Rs. 27000. What is his total salary?
In a conference, 78% people were present, and the no. of absentees was 110. The total number of the people who were invited was
Due to recession in the company number of employees decreased by 12.5%, but the working time of employees increased by 2 hrs, so that the production of ...
