EXAM: RETAIL CREDIT RISK

Which of the following statement is not correct?

The net stable funding ratio (NSFR) is designed to provide incentives for banks to seek more stable forms of funding. X % of illiquid assets need to be backed with stable funding, but this is Y % for qualifying residential mortgages. What are X and Y?

The risk evaluation process is the most important part of _______.

Which of the phrases below is missing from this sentence?

Risk factors are classified based on the type of the risk. Please mark the factor NOT related to the balance sheet out of the factors below:

Risk factors are classified based on the type of the risk. Please mark the factor related to the delivery channels out of the following below:

To have for every loan a corresponding deposit that is of the same duration and same value does not help secure which type of risk?

When a bank grants fixed rate loans it could be exposed to interest rate risk if which of the following happens?

A risk manager should generally not need which of the following?

Which of the following is not considered part of the 6 Cs of lending on SMEs?

Banks are facing a new set of challenges with their retail portfolios compared to their corporate credit portfolios, some of which are (mark two as correct):

Which of the following is not considered to be within the subdivided 3 sub–portfolios of the retail portfolio of a bank according to BCBS?

Which of the following BASEL II recommendations does NOT apply to retail lending?

Minimum capital requirements as per Basel III will remain at  X % of risk-weighted assets (RWA). What is X?

Which statement below is correct?

By 2025, the minimum level for common equity Tier 1 (CET1) will increase to 4.5% of RWA and Tier 1 to X % of RWA. What is X?