CAIIB Previous Year Question Paper, Download Free PDF

1. What is the primary purpose of risk management in banking?

2. Which of the following is NOT a type of financial risk?

3. Which approach is used to measure market risk?

4. Operational risk includes risks due to:

5. The Basel framework primarily addresses which type of risk?

6. The Weighted Average Cost of Capital (WACC) is calculated by:

7. What is the primary objective of capital budgeting?

8. Which formula is used to calculate NPV (Net Present Value)?

9. The Payback Period measures:

10. IRR is the discount rate at which:

1. XYZ Bank holds the following liquid assets (₹ lakh): Cash 2,000; excess SLR government securities 6,000; Level 2A corporate bonds 3,000; Level 2A covered bonds 2,000; Level 2B RMBS 1,200; Level 2B equity securities 800. What is total HQLA after the applicable haircuts?

2. A bank has total assets of ₹13,800 and non-rate-sensitive assets of ₹800. What are its rate-sensitive assets?

3. A bank has total liabilities of ₹13,800 and non-rate-sensitive liabilities of ₹1,200. What are its rate-sensitive liabilities?

4. Match the business line with its primary activities: A. Corporate Finance; B. Trading & Sales; C. Retail Banking; D. Commercial Banking. 1. Retail lending & deposits, trust and estates; 2. Mergers & acquisitions, underwriting, IPO, research; 3. Fixed income, equity, FX, commodities, brokerage; 4. Project finance, trade finance, leasing, guarantees.

5. Which of the following falls under the Trading & Sales business line?

6. Consider the following statements about the Countercyclical Capital Buffer (CCyB) framework in India: 1. It is activated when the credit-to-GDP gap crosses the lower threshold of 3 percentage points. 2. It reaches its maximum at a credit-to-GDP gap of 15 percentage points. 3. The maximum buffer is 2.5% of risk-weighted assets. 4. If the gap remains below 3 percentage points, banks must maintain a 1% CCyB. Which statements are correct?

7. Under RBI securitisation norms, what is the Minimum Retention Requirement (MRR) for residential mortgage-backed securities?

8. An originator securitises loans with a book value of ₹500 crore. What MRR applies to (i) bullet repayment loans, (ii) residential mortgage-backed securities, and (iii) normal loans with original maturity of 24 months or less?

9. ABC Bank has total capital of ₹5,400 crore and RWA of ₹60,000 crore. RBI identifies a ₹1,000 crore provisioning shortfall that must be deducted from capital. After adjustment, what is the bank’s CRAR and compliance position against the 9% Indian minimum and the 8% Basel I Cooke benchmark?

10. Bank X has CET1 of ₹4,800 crore, Tier 1 capital of ₹6,000 crore, Tier 2 capital of ₹1,500 crore and RWA of ₹70,000 crore. It has ₹1,400 crore of capital conservation buffer. Assume the Countercyclical Capital Buffer is not activated. Which statement is most accurate?

11. What is the main indicator in the Countercyclical Capital Buffer framework in India?

12. Match the regulatory capital component with the percentage of RWA: A. Capital Conservation Buffer; B. Minimum CET1 plus CCB; C. Additional Tier 1 Capital; D. Tier 2 Capital. i. 1.5%; ii. 2%; iii. 8%; iv. 2.5%.

13. If a bank’s leverage ratio is 4.5% and Tier 1 capital is ₹11,550 crore, what is its exposure measure?

14. If LCR is 110% and net cash outflow over the next 30 days is ₹550 crore, what HQLA must the bank hold?

15. If Available Stable Funding is ₹375 crore and Required Stable Funding is ₹325 crore, what is the NSFR?

16. A banking loss arising primarily from adverse economic, political or sovereign developments in Greece affecting counterparties in that country is classified as which risk?

17. Under the COSO ERM 2004 framework, which of the following is NOT one of the eight components?

18. Under the Basic Indicator Approach, the operational-risk capital charge is based on which measure?

19. A 91-day Treasury Bill with face value ₹100 is priced at ₹99.26. Using a 365-day year, what is its approximate money-market yield?

20. The risk that interest rates on different assets, liabilities and off-balance-sheet items may change by different magnitudes is called:

1. Which of the following is a key objective of asset liability management (ALM)?

2. Which of the following is a significant characteristic of a bank’s capital adequacy ratio (CAR)?

3. What does the term ‘loan loss provisioning’ refer to?

4. Which of the following is NOT part of the Basel III framework?

5. The term ‘Duration’ in risk management refers to:

6. Which of the following is a major factor that affects the cost of funds for a bank?

7. What is the primary purpose of financial derivatives in a bank’s portfolio?

8. What does the term ‘Net Interest Margin (NIM)’ represent?

9. Which of the following is a method used for managing market risk?

10. Which ratio is used to assess a bank’s liquidity position?

1. Which of the following exercises control over banks from their opening to their winding up?

2. The banks in India fall under which of the following categories?

3. As per the definition under Section 5(b) of the Banking Regulation Act, 1934, which of the following is not correct in the context of banking business?

4. Which of the following cannot accept deposits withdrawable by cheque?

5. Which of the following cannot accept deposits from the public?

6. Which of the following statements is not correct in the context of the Banking Regulation Act?

7. Which of the following forms of business, other than banking business, cannot be undertaken by banks?

8. Which of the following does not match in the context of the formation of banks?

9. Cooperative banks fall under which type of organisation?

10. Which of the following is not correct regarding the purpose for which RBI was created under the Reserve Bank of India Act, 1934?