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Consider the following with regards to
1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.
2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.
3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.
Select the correct answer using the codes below.
1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.
2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.
3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.
Select the correct answer using the codes below.
- a)1 and 2 only
- b)2 only
- c)2 and 3 only
- d)1 and 3 only
Correct answer is option 'B'. Can you explain this answer?
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Consider the following with regards to1. Capital Adequacy Ratio (CAR) ...
What is Capital to Risk Weighted Assets Ratio (CRAR)? The CRAR, also known as the Capital Adequacy Ratio (CAR), is the ratio of a bank’s capital to its risk. It is a measure of the amount of a bank’s core capital expressed as a percentage of its risk weighted asset. It is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process.
Statement 1: All demand deposit is bank’s liability. Moreover, not all liabilities are classified as risky assets. So, S1 is an incorrect statement.
Why CRAR was enforced? The enforcement of regulated levels of this ratio is intended to protect depositors and promote stability and efficiency of financial systems around the world. It determines the bank’s capacity to meet the time liabilities and other risks such as credit risk, operational risk, etc.
Statement 3: The Basel III norms stipulated a capital to risk weighted assets of 8%.However, as per RBI norms, Indian scheduled commercial banks are required to maintain a CRAR of 9%.
Learning: The Cabinet Committee on Economic Affairs has given its approval for continuation of the process of recapitalization of Regional Rural Banks (RRBs) by providing minimum regulatory capital to RRBs for another year beyond 2019-20, that is, up to 2020-21.The recapitalisation process of RRBs was approved by the cabinet in 2011 based on the recommendations of a committee set up under the Chairmanship of K C Chakrabarty. The National Bank for Agriculture and Rural Development (NABARD) identifies those RRBs, which require recapitalisation assistance to maintain the mandatory CRAR of 9% based on the CRAR position of RRBs, as on 31st March of every year. This is for those RRBs which are unable to maintain minimum Capital to Risk weighted Assets Ratio (CRAR) of 9%, as per the regulatory norms prescribed by the Reserve Bank of India.
Statement 1: All demand deposit is bank’s liability. Moreover, not all liabilities are classified as risky assets. So, S1 is an incorrect statement.
Why CRAR was enforced? The enforcement of regulated levels of this ratio is intended to protect depositors and promote stability and efficiency of financial systems around the world. It determines the bank’s capacity to meet the time liabilities and other risks such as credit risk, operational risk, etc.
Statement 3: The Basel III norms stipulated a capital to risk weighted assets of 8%.However, as per RBI norms, Indian scheduled commercial banks are required to maintain a CRAR of 9%.
Learning: The Cabinet Committee on Economic Affairs has given its approval for continuation of the process of recapitalization of Regional Rural Banks (RRBs) by providing minimum regulatory capital to RRBs for another year beyond 2019-20, that is, up to 2020-21.The recapitalisation process of RRBs was approved by the cabinet in 2011 based on the recommendations of a committee set up under the Chairmanship of K C Chakrabarty. The National Bank for Agriculture and Rural Development (NABARD) identifies those RRBs, which require recapitalisation assistance to maintain the mandatory CRAR of 9% based on the CRAR position of RRBs, as on 31st March of every year. This is for those RRBs which are unable to maintain minimum Capital to Risk weighted Assets Ratio (CRAR) of 9%, as per the regulatory norms prescribed by the Reserve Bank of India.
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Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?
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Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?.
Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Here you can find the meaning of Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following with regards to1. Capital Adequacy Ratio (CAR) is the ratio of a bank’s demand deposits to its total liability.2. The enforcement of regulated levels of CAR is intended to protect depositors and promote stability and efficiency of financial systems.3. As per RBI norms, Indian scheduled commercial banks are required to maintain the CAR percentage as stated in the Basel III Banking report.Select the correct answer using the codes below.a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
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