BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
State Bank of India
|
|
|
ICICI Bank
|
|
|
Punjab National Bank
|
|
|
HDFC Bank
|
Detailed explanation-1: -In India, currently Bandhan Bank has the highest capital adequacy ratio.
Detailed explanation-2: -Basel Norm III is also known as the Third Basel Accord or Basel Standards. It is a regulatory framework followed on a voluntary basis on a global scale. The framework deals with capital adequacy in banks, stress testing, and market liquidity risk.
Detailed explanation-3: -RBI voluntarily adopted capital adequacy regulations in April 1992 for the Indian banking sector, thus complying with the best practices of Basel I norms recommended by BCBS in 1988. These capital adequacy norms were revised to Basel II and subsequently upgraded to Basel III.
Detailed explanation-4: -Total regulatory capital should be at least 9% of risk weighted assets and within this, Tier 1 capital should be at least 6% of risk weighted assets. Within Tier 1 capital, innovative Tier 1 instruments are limited to 15% of Tier 1 capital.