Elements of Integrated Risk Dr. D V Srinivasa Rao, Faculty, IMAGE An interaction on Risk Management practices

Elements of Integrated Elements of Integrated Risk Risk

Dr. D V Srinivasa Rao, Faculty, Dr. D V Srinivasa Rao, Faculty, IMAGEIMAGE

An interaction on

Risk Management practices

Risk Management –

Basel II and III

Operational Risk & Market Risk

byDr. D V Srinivasa Rao

Faculty, IMAGE

Basel Capital Accords - HistoryAccord Pr wef Focus

Basel - I 1986 1988 Credit Risk

Basel – IRevision

1996 1997 Credit and Market Risk

Basel - II 1999 2007 Credit, Market and Operational Risk

Basel - III 2012 2013 Capital buffer & Counter cyclical buffer

CRAR RWA IRAC

Basel Committee defined bank’s capital in the form of two tiers

Tier I ‘ Core ‘ capital - comprising paid up equity capital + General Reserves

Tier II‘ Supplementary’ capital comprising specific reserves & preferred stocks and long term subordinated debt. Maximum - 50%

Basel II – Structure

Total capital = Tier 1 + Tier 2Tier 1: Shareholders’ equity + disclosed reservesTier 2: Supplementary capital (e.g.revaluationreserves,provisions)

Total Capital

Market RiskThe risk of losses in trading positions when prices move adversely

Credit Risk The risk of loss arising from default by a creditor or counterparty

Operational Risk

The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events

Total capital

Credit risk + Market risk + Operational risk= Bank’s capital ratio (minimum 9% in India)

ICAAP results

ICAAP process/ results not fully

satisfactory

Identify, review and evaluate all risk factors and control factors

*Assess, review and evaluate the ICAAP

SREP

Whole range ofavailable prudential

measures including own funds

Specific own funds

requirement

Capital allocated for

Pillar 2

ICAAP

*Identify amount and quality of internal capital in relation to risk

profile, strategies and business plan

PRODUCE ICAAP NUMBERAND ASSESSMENT

Assess all risks; identify material ones; identify controls to mitigate the

risks

Assess, review and evaluatecompliance with minimumstandards set in Directive

SREP CONCLUSIONS

ICAAP process/ resultsfully satisfactory

Pillar 1 minimum regulatory

capital

SUPERVISORY REVIEW PROCESS

*Narrow scope supervisory review

CAPITAL

Supervisory evaluation of

on-goingcompliance

withminimum

standards & requirements

INT

ER

NA

L G

OV

ER

NA

NC

E

DIALOGUE

CHALLENGE

Pillar II - SREP

Pillar -III Market DisciplinePillar -III Market Discipline

19/04/2319/04/23 Indian Bank, Risk Management DeptIndian Bank, Risk Management Dept 88

Basel III

Capital Buffers

• Capital conservation buffer 2.5% in addition to increased core capital

• This will make minimum core capital 4.5%+2.5%• Regulators can specify countercyclical buffer capital

up to2.5%, this is to protect banks during excessive credit growth

• Both the Buffer capital can be used in stressed environment

• Conservation buffer is phased out from Jan 2016 to Jan2019 (In India RBI revised the schedule to March 2019)

Basel III, Introducing a global liquidity standard

• Liquidity Coverage Ratio to promote short term resilience LCR – Stock of high quality liquid assets /Total net cash flows over next thirty days should be more than 100%

• Net Stable Funding Ratio NSFR - Available amount of stable funding/Required amount of stable funding is more than 100%

• Monitoring Tools, Contractual maturity mismatch, Concentration funding, available unencumbered assets, liquidity coverage by significant currency, Market related information

Components of Capital

Under RBI guidelines (Basel III), total regulatory capital will consist of the sum of the following categories:

(i)Tier 1 Capitala) Common Equity Tier 1 (CET1)

b) Additional Tier 1 (AT1)

(ii)Tier 2 Capital (T2)

Rating / Scoring Model • Software driven rating/scoring models (RAM) for

different segments are in place from 1st April, 2008 • 9 grades scale starting from ‘AAA’ to ‘C’ (besides "D" for

NPA accounts). • For Project Rating 5 P1 to P5• Frequency ANNUAL –a/c rated “CC / “C” quarterly• Entry Barrier -entry level rating of not below ‘BBB’/

project rating-P2(Obligor grade)

04/19/2304/19/23 Dr D V S RaoDr D V S Rao

Dr D V S RaoDr D V S Rao

Segment Rating

Big Corporate loan accounts of Rs. 5 Crores and above

Rating from External Rating agency

Manufacturing, Trading & Services Segment accounts with exposure of Rs.50 lakh and above

RAM rating

Rural Banking Segment:Accounts with exposure of Rs.100 lakh and above

RAM rating

Personal Banking Segment :All SLPs under Personal Banking Segment having exposure of Rs.25000/- and above

Internal scoring model vizHome Loans, Mortgage Loans, Automobile Loans,Educational Loans, Consumer Loans, Personal Loans & Others

04/19/2304/19/23


EXTERNAL RATING AGENCIESEXTERNAL RATING AGENCIES

The ratings awarded by the following rating agencies for the purpose of risk weighting to compute capital adequacy(a) Credit Analysis and Research Limited (CARE)

(b) CRISIL Limited (CRISIL)(c) India Ratings & Research Pvt Ltd (India Ratings)

(d) ICRA Limited (ICRA)(e) Brickwork Ratings India Pvt., Ltd (BRICKWORK)

(f) Small & Medium Enterprise Rating Agency (SMERA)

04/19/2304/19/23

Validity of the Ratings based onValidity of the Ratings based on

Audited Financial

Data

Provisional Financial

Data

Projected Financial

Data 6 Months only

18 months from the date of Audited balance sheet for the respective financial year, irrespective of date of confirmation of rating

6 months from the date of confirmation of rating or 9 months from the date of relevant financial year whichever is earlier


Entry Barrier Obligor rating - ‘BBB’ Project rating - ‘P2’

Review / Renewal:


OBLIGAOR RATINGRating obtained based on the following risk is called Obligor Rating.

•a) Financial Risk

•b) Industry Risk

•c) Business Risk

•d) Management Risk

Pricing decision to be taken based on the

Combined rating04/19/2304/19/23 Dr D V S RaoDr D V S Rao

RAM rating is permitted for credit exposures of below Rs.50 lakhs also under the respective models as applicable for above Rs.50 lakhs.a) For accounts with limits less than Rs.20 lakhs:For assessment, self certified balance sheet may be considered for rating the account.b) For accounts with limit of Rs.20 lakhs and above:For assessment, only audited balance sheet is to be considered and the age of the balance sheet shall not be older than 18 months

Limit Upto 50 lakhs – RAM Rating is permitted. Interest concession to be passed on based on obligor rating.

RATING BASED PRICING


FACILITY RATING• Rating arrived based on the securities is called Facility

Rating.• EVR is valid for 3 years.• Home loan accounts with balance outstanding of

above Rs.50 lakhs and home loans under SMA / NPA have to be revalued once in three years

• Realisable value to be taken as value of security• Two engineer valuation to be obtained, if value of

security is Rs. 1 Cr and above for SLPs including Home Loans, Rs.5 Crore and above for Other Loans.(value difference max 15%)

• Average of 2 engineers valuation to be taken as value of security04/19/2304/19/23 Dr D V S RaoDr D V S Rao

04/19/2304/19/23Dr D V S RaoDr D V S Rao

1 Loan Against Deposits

2 All Jewel Loans

3 Staff Loans

4 All Loans < Rs.25000/- other than those under Rural Banking Segment and Personal Banking Segment

5 All Loans < Rs.200000/- under Rural Banking Segment

Scoring Models Exempted Categories

Stock Audit

Credit AuditCredit Audit

Legal Audit

Pre-release Audit

Standard borrowal a/cs with Standard borrowal a/cs with Rating of BBB – Rs. 1 CrRating of BBB – Rs. 1 Cr

Below BBB – Rs. 50 LakhsBelow BBB – Rs. 50 LakhsFor all loans of Rs. 100 For all loans of Rs. 100 Lakhs & above, where Lakhs & above, where mortgage of property offered mortgage of property offered as securityas securityFor limits of Rs. 5 Crore and For limits of Rs. 5 Crore and above – once in 3 yearsabove – once in 3 years

Pre release Audit >= 25 LakhsHome Loans & Plot loans – Rs. 50 Lakhs and aboveWherever concurrent auditor certifies compliance, pre release audit need not be conducted

Threshold limits Threshold limits Individual – Rs. 1 Crore Individual – Rs. 1 Crore Pvt Ltd Co. - Rs. 2 Crore and abovePvt Ltd Co. - Rs. 2 Crore and abovePublic Ltd Co – Rs. 5 Crore and abovePublic Ltd Co – Rs. 5 Crore and abovePublic Sector undertakings – ExemptedPublic Sector undertakings – ExemptedNPA a/cs – WC of Rs. 1 Crore and aboveNPA a/cs – WC of Rs. 1 Crore and aboveContractors – Rs. 5 Crore and aboveContractors – Rs. 5 Crore and aboveConsortuium / Multiple Banking - LeaderConsortuium / Multiple Banking - Leader

Risk Mitigation measures


• If the loan amount is more than Rs.10 lakhs for retail loans like Home loans, Ind Mortgage and Rent Encash i.e. Two reports to be verified.

• For Vehicle Loans and Salary Loans irrespective of the loan amount, branch has to verify both CIBIL and Experian and pull out reports from both the service providers. i.e Two reports to be taken.

• For all retail loans irrespective of the loan amount, if at the time of enquiry with the first credit rating agency, the system returns ‘No Report’, then the sanctioning authority has to search the data base of the second Company / Agency.

Accessing Consumer Credit Information

04/19/2304/19/23

Dr. D V Srinivasa RaoDr. D V Srinivasa Rao

LIQUIDITYLIQUIDITY 1. Ability to accommodate decrease1. Ability to accommodate decrease

in liability and to fund increase in assetsin liability and to fund increase in assets2. Meet all expected and unexpected claims2. Meet all expected and unexpected claims

on the Balance sheet on the Balance sheet

3. Profitability3. ProfitabilityALMALM

INTEREST RATE RISKINTEREST RATE RISK

Adverse Impact on Earnings NIIAdverse Impact on Earnings NIIImpact on the Economic Value of EquityImpact on the Economic Value of EquityEffects

SOURCESSOURCES Repricing, Basis Risk, Repricing, Basis Risk, Yield Curve Risk, Embedded Option RiskYield Curve Risk, Embedded Option Risk


REPRICING RISKREPRICING RISKTiming differences of the maturities of the Timing differences of the maturities of the

Fixed Rate InstrumentsFixed Rate Instruments

Repricing of Floating Rate InstrumentsRepricing of Floating Rate Instruments

BASIS RISKBASIS RISKMoving of Interest Rates of different Moving of Interest Rates of different A & L in different magnitudesA & L in different magnitudesBasis of date and periodBasis of date and period

EMBEDDED OPTION RISKEMBEDDED OPTION RISKPre-payment of Loans Pre-payment of Loans Premature withdrawal of Deposits Premature withdrawal of Deposits In both the cases Banks Actual NII will In both the cases Banks Actual NII will

be less than the anticipated NIIbe less than the anticipated NII

Sources of Market Risk


MEASUREMENT APPROACHES MEASUREMENT APPROACHES FOR OPERATIONAL RISK FOR OPERATIONAL RISK

CAPITALCAPITAL

Banks activities are divided into eight business Banks activities are divided into eight business lines – Corporate finance, Trading and Sales, lines – Corporate finance, Trading and Sales, Retail Banking, Commercial Banking, Payment Retail Banking, Commercial Banking, Payment and Settlement, Agency Services, Asset and Settlement, Agency Services, Asset Management, Retail brokerageManagement, Retail brokerage

Separate Beta factors (18, 15, 12) given for each Separate Beta factors (18, 15, 12) given for each business line to be multiplied by the gross business line to be multiplied by the gross income to arrive at the capital requirementincome to arrive at the capital requirement

Basic Indicator ApproachBasic Indicator Approach Banks to hold capital for Operational risk equal to the Banks to hold capital for Operational risk equal to the average over the previous years a fixed percentage (15%)average over the previous years a fixed percentage (15%)

Standardised ApproachStandardised Approach

ADVANCEDADVANCED

MEASUREMENT MEASUREMENT

APPRAOCHAPPRAOCH

Internal Data Internal Data External dataExternal dataScenario analysisScenario analysisFactors reflecting the business Factors reflecting the business environmentenvironmentInternal Control SystemsInternal Control Systems

? ?

Which of the following is not Which of the following is not a Credit Bureaua Credit Bureau

1.1.CIBIL CIBIL

2.2.Equifax Equifax

3.3. ICRA ICRA

4.4.ExperianExperian

Which of the following is not a Which of the following is not a rating agency?rating agency?

1.1.CARE CARE

2.2.CRISIL CRISIL

3.3.CIBIL CIBIL

4.4. ICRA.ICRA.

Which of the following can be Which of the following can be obtained from CIBIL report?obtained from CIBIL report?

1.1.Credit ScoreCredit Score

2.2.Credit history Credit history

3.3.Repayment history Repayment history

4.4.All the aboveAll the above

What rating we have to obtain for an Home Loan What rating we have to obtain for an Home Loan of Rs. 30 Lakhs?of Rs. 30 Lakhs?

1.1. Internal scoringInternal scoring

2.2. External RatingExternal Rating

3.3. RAM ratingRAM rating

4.4. No rating required for Home No rating required for Home Loan upto Rs.50 LakhsLoan upto Rs.50 Lakhs

What is the new name of FITCH Ratings?What is the new name of FITCH Ratings?

1.1. India Ratings & Research LtdIndia Ratings & Research Ltd

2.2. BRICKWORKBRICKWORK

3.3. FITCH IndiaFITCH India

4.4. FITCH RatingsFITCH Ratings

Which of the following Rating agency is a public Which of the following Rating agency is a public sector rating agency?sector rating agency?

1.1. Indian RatingsIndian Ratings

2.2. BRICKWORKBRICKWORK

3.3. SMERASMERA

4.4. CARECARE

Who is the promoter of rating Who is the promoter of rating agency SMERA ?agency SMERA ?

1.1. Ministry of Finance Ministry of Finance

2.2. Ministry of Small IndustriesMinistry of Small Industries

3.3. SIDBISIDBI

4.4. IDBIIDBI

What is RAM?What is RAM?

1.1. Random Assessment ModelRandom Assessment Model

2.2. Risk Assessment ModelRisk Assessment Model

3.3. Risk Assessment MethodRisk Assessment Method

4.4. Risk Aversion MethodRisk Aversion Method

What is threshold limit for doing RAM rating?What is threshold limit for doing RAM rating?

1.1. Rs. 10 LakhsRs. 10 Lakhs




What is threshold limit for getting rating from an What is threshold limit for getting rating from an external rating agency?external rating agency?

1.1. Rs. 1 CroreRs. 1 Crore




Who has to do pre-release audit for a Structured Who has to do pre-release audit for a Structured loan of Rs. 45 Lakhs?loan of Rs. 45 Lakhs?

1.1. Pre-release audit not required for Pre-release audit not required for loans of upto Rs. 50 Lakhsloans of upto Rs. 50 Lakhs

2.2. Loans OfficerLoans Officer

3.3. Branch ManagerBranch Manager

4.4. Any Officer other than the Officer Any Officer other than the Officer involved in loan processinginvolved in loan processing

What is the frequency of Rating for loans rated What is the frequency of Rating for loans rated CC/C?CC/C?

1.1. AnnualAnnual

2.2. HalfyearlyHalfyearly

3.3. QuarterlyQuarterly

4.4. No need for rating for CC/C a/csNo need for rating for CC/C a/cs

Where from we have to draw Credit Report for a Where from we have to draw Credit Report for a vehicle loan of Rs. 50000/-?vehicle loan of Rs. 50000/-?

1.1. CIBILCIBIL

2.2. ExperianExperian

3.3. Both CIBIL and ExperianBoth CIBIL and Experian

4.4. No need for credit report for No need for credit report for Vehicle loan, as it fully securedVehicle loan, as it fully secured

For retail loans other than Home loans Credit For retail loans other than Home loans Credit Report has to be drawn from?Report has to be drawn from?

1.1. CIBILCIBIL

2.2. ExperianExperian

3.3. First from Experian lest from CIBILFirst from Experian lest from CIBIL

4.4. No need for credit report for Retail No need for credit report for Retail loans, as the amount is very smallloans, as the amount is very small

What is the threshold limit for Legal Audit?What is the threshold limit for Legal Audit?

1.1. Rs. 25 Lakhs and aboveRs. 25 Lakhs and above


3.3. Rs. 1 Crore and aboveRs. 1 Crore and above

4.4. No legal audit required No legal audit required

Pre-release Audit was introduced to mitigate?Pre-release Audit was introduced to mitigate?

1.1. Credit RiskCredit Risk

2.2. Operational RiskOperational Risk

3.3. Market RiskMarket Risk

4.4. It is not a Risk mitigation techniqueIt is not a Risk mitigation technique

What is the threshold limit for Credit Audit for What is the threshold limit for Credit Audit for accounts with rating of below BBB?accounts with rating of below BBB?

1.1. Rs. 2 Crores and aboveRs. 2 Crores and above


3.3. Rs. 1 Crore and aboveRs. 1 Crore and above

4.4. Rs. 5 Crore and above Rs. 5 Crore and above

Can we do rating under RAM for an Home Loan Can we do rating under RAM for an Home Loan of Rs. 20 Lakhs?of Rs. 20 Lakhs?

1.1. No RAM rating is for all loans of No RAM rating is for all loans of Rs. 25 Lakhs and aboveRs. 25 Lakhs and above

2.2. Yes we can do RAM rating for any Yes we can do RAM rating for any amount of loanamount of loan

3.3. RAM rating can not be done for RAM rating can not be done for loans of below Rs. 25 Lakhsloans of below Rs. 25 Lakhs

4.4. We have to do only Scoring modelWe have to do only Scoring model

Which risk is managed by a Which risk is managed by a bank by adopting the Assets bank by adopting the Assets and Liability Management?and Liability Management?

1. Interest risk

2.Liquidity risk

3.Operational risk

4.a+b

5.a+b+c

The possibility that an exporter not getting The possibility that an exporter not getting payment due to restriction on transfer of payment due to restriction on transfer of international payments due to its very poor international payments due to its very poor foreign exchange position of the country of foreign exchange position of the country of the importer is called the importer is called

1. International risk

2.Foreign exchange risk

3.Operational risk

4. Country risk

5.Systemic risk

The risk of loss arising from The risk of loss arising from adverse public opinion is called adverse public opinion is called the ____risk.the ____risk.

1. Public opinion risk

2.Reputation risk

3.Legal risk

4.Vigilance risk.

The staff who makes complaints of corruption The staff who makes complaints of corruption against any official of the organizationagainst any official of the organization much before the organization knows much before the organization knows about the same is calledabout the same is called..

1.Preventive vigilance actor

2.Whistle blower

3.Trumpeter

4.Drummer

The staff who was very busy in the counter The staff who was very busy in the counter was called by BM for an urgent work was called by BM for an urgent work in his cabin. The staff left the counter in his cabin. The staff left the counter without signing off. What type of risk without signing off. What type of risk this action create to the Bank?this action create to the Bank?

1.Transaction Risk

2.System Risk

3.Operational Risk

4.Inherent Risk

Under which Pillar of RBI’S New Capital Adequacy Under which Pillar of RBI’S New Capital Adequacy framework (Basel-II guidelines), minimum 9% framework (Basel-II guidelines), minimum 9% capital adequacy for credit risk, market risk capital adequacy for credit risk, market risk and operational risk has been prescribed ?and operational risk has been prescribed ?

1.Pillar-I

2.Pillar-II

3.Pillar-III

4.None.

The methods used for The methods used for computation of capital for computation of capital for credit risk under Basel-II arecredit risk under Basel-II are

1. Standardized Approach

2. Internal Rating Based Approach-Foundation

3. Internal Rating Based Approach-Advanced

4. All the above.

Our Bank implemented Our Bank implemented Standardized approach for Standardized approach for computation of capital for credit computation of capital for credit risk under Basel-II as onrisk under Basel-II as on

1. 31.03.2009

2. 31.03.2010

3.Already implemented on 31.03.2008

4.Not known.

The methods used for computation The methods used for computation of capital for operational risk of capital for operational risk under Basel-II areunder Basel-II are

1. Basic Indicator Approach

2. Standardized Approach

3.Advanced Measurement Approach

4. All the above

What do you mean by CORE ?What do you mean by CORE ?

1. CRISIL Operational Risk Evaluator

2. Computation of Operation Risk Evaluator

3. Computation of Operational Risk Exercise

4. Centralized Operational Risk Evaluation

As per Basel – 2 guidelines the As per Basel – 2 guidelines the activities of Banks are activities of Banks are grouped into ___ Business grouped into ___ Business lineslines

1. 8

2. 10

3. 12

4. 5

As The Gross Income of 8 As The Gross Income of 8 Business line activities are Business line activities are mapped into ___Business mapped into ___Business lines for computation of lines for computation of Operational Risk calcultationOperational Risk calcultation

1. 5

2. 4

3. 3

4. 2

Our Bank implemented Basic Indicator Our Bank implemented Basic Indicator approach for computation of approach for computation of capital for Operational risk under capital for Operational risk under Basel-II as onBasel-II as on

1.31.03.2009

2.31.03.2010

3.Already implemented on 31.03.2008

4.Not known.

Which of the following methods has been Which of the following methods has been adopted by our Bank for computation adopted by our Bank for computation of capital for market risk under Basel-IIof capital for market risk under Basel-II

1. Standardized Maturity Method

2. Standardized Duration Method

3. Internal Risk Management Models Method

4. Advanced Measurement Approach.

Operational risk is defined Operational risk is defined as:as:

1.Risk of loss resulting from inadequate & failed internal processes

2.Risk of loss resulting from mistakes or frauds committed by the employees.

3.Risk of loss resulting from computer hacking

4.All (a),(b) & (c).

To which type of ‘Business Line’ To which type of ‘Business Line’ classification, the ‘Currency classification, the ‘Currency Chest’ operations belong to?Chest’ operations belong to?

1.Corporate Finance

2.Payment & Settlement

3.Agency Services

4.Execution, Delivery & Process management.

Capital adequacy on Banking Capital adequacy on Banking requirement as per Basle -3requirement as per Basle -3

1.1. 99%%2.2. 88%%3.3. 10%10%4.4. 12%12%

Revaluation reserves will be Revaluation reserves will be consideredconsidered for inclusion in for inclusion in Tier II capital at a discount ofTier II capital at a discount of

1.1. 55 %55 %2.2. 100 %100 %3.3. 60 %60 %4.4. 25 %25 %

What is the numerator of Capital Adequacy What is the numerator of Capital Adequacy Ratio formulaRatio formula

1. 1. Total Capital Total Capital2.2. Risk Weighted AssetRisk Weighted Asset3.3. Total advancesTotal advances4.4. Total InvestmentsTotal Investments

What is the maximum ratio of Tier – II What is the maximum ratio of Tier – II capital permitted as per Basel - 3capital permitted as per Basel - 3

1. 1. 2 % 2 %2.2. 4 %4 %3.3. 55 % %4.4. 50 %50 %

Perpetual Non-Cumulative Perpetual Non-Cumulative Preference Shares (PNCPS) Preference Shares (PNCPS) are included in ___ Capital are included in ___ Capital under Basel - 3under Basel - 3

1.1.AT1AT12.2.CET1CET13.3.T2T24.4.T1T1

Which of the following will Which of the following will not form part of Tier I not form part of Tier I capital:capital:

1. Paid up equity capital 1. Paid up equity capital

2. Statutory Reserves2. Statutory Reserves

3. Revaluation Reserve3. Revaluation Reserve

4. Disclosed Reserve or free reserve4. Disclosed Reserve or free reserve

Basle II indicated 3 pillars for risk Basle II indicated 3 pillars for risk management in Banks. Which management in Banks. Which is not one of these 3 pillars.is not one of these 3 pillars.

1.1. Minimum Capital Requirement, Minimum Capital Requirement, CRARCRAR

2.2. Supervisory Review & MonitoringSupervisory Review & Monitoring

3. Credit Risk Rating3. Credit Risk Rating

4. Market discipline & public 4. Market discipline & public disclosuredisclosure

As per the credit risk policy of the bank, for taking a credit As per the credit risk policy of the bank, for taking a credit decision (fresh/renewal/review/enhancement) one decision (fresh/renewal/review/enhancement) one of the following rating grades will be reckoned of the following rating grades will be reckoned

1.Obligor Rating Grade

2.Integrated Rating Grade

3.Facility Rating Grade

4.Higher of the Obligor Rating Grade or Combined Rating Grade

Pre- release audit exercise Pre- release audit exercise should be completed within---should be completed within---

1. 24hours

2. One week

3. Fortnight

4. One month

The 3rd housing loan extended to the The 3rd housing loan extended to the same customer is to be treated as--same customer is to be treated as--

1.Mortgage loan

2.Home Loan

3.Commercial real Estate Exposure

4.Non Priority Housing Loan

A preference share is one A preference share is one which iswhich is

1. preferential as to dividend

2. preferential as to the repayment of capital

3. ‘a’ and ’b’ above

4. Preferential as to the voting right

Redeemable preference shares Redeemable preference shares of less than 12 years to run of less than 12 years to run is classified asis classified as

1.Current liability

2.Equity

3.Term liability

4.Reserves

The ideal DSCR should beThe ideal DSCR should be

1. 2:12. 1:13. 1.5:14. non such norms

What do you mean by IASWhat do you mean by IAS

1. Indian Accounting Statements2. International Accounting Standards3. Indian Accounting Standards4. International Accounting Statements

What do you mean by IFRSWhat do you mean by IFRS

1. Indian Financial Return Statements2. International Financial Reporting Standards3. Indian Financial Reporting Standards4. International Financial Return Statements

What is the present Accounting What is the present Accounting standards followed in Indiastandards followed in India

1. IAS 392. IFRS3. IFRS 94. IAS

What is the new nomenclature What is the new nomenclature of Accounting standards of Accounting standards under IFRSunder IFRS

1. IAS 392. IFRS3. IFRS 94. IAS

79

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Documents

Elements of Integrated Risk Dr. D V Srinivasa Rao, Faculty, IMAGE An interaction on Risk Management practices