Which of the following risks are associated with Banking Sector?
#Part8#BankAndFinance#Hard
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All of the above
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Market Risk or Liquidity Risk
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Interest Rate Risk
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Credit or Default Risk
What role do central banks play in managing liquidity risk in the financial system?#Part8#BankAndFinance#Hard
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They prohibit interbank lending
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They act as borrowers of first resort
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They set deposit insurance premiums
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They act as lenders of last resort
What is the primary responsibility of a bank?
#Part8#BankAndFinance#Hard
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To protect customers' deposit and secrecy
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To make profits for shareholders
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To provide financial advice to clients
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To provide loans to clients
What kind of relationship exists between a bank and its clients?
#Part8#BankAndFinance#Hard
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Contractual
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Business partnership
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Social
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Fiduciary
What is a bank's role in the economy?
#Part8#BankAndFinance#Hard
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To act as a financial intermediary
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To provide employment
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To provide social services
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To regulate the economy
What is the significance of commercial banks in economic development?
#Part8#BankAndFinance#Hard
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They are only for the rich
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They are not important
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They are a backbone of the economy
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They provide employment opportunities
What is the role of RM in the credit operations process?
#Part8#BankAndFinance#Hard
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To approve credit proposals
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To monitor NPLs
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To disburse loans
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To discuss with clients & receive requests for credit
What is the purpose of Credit Risk Grading (CRG)?
#Part8#BankAndFinance#Hard
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To analyze the loan proposition
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To determine the credit rating
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To evaluate the creditworthiness of the borrower
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To determine the security arrangement
What is the primary responsibility of banks in the ERM guideline?
#Part8#BankAndFinance#Hard
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To approve high rated projects
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To establish a database of NPLs
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To measure environmental risk
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To evaluate the socio-economic
What is the importance of environmental risk management in green banking policy?
#Part8#BankAndFinance#Hard
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To approve high rated projects
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To optimize technical feasibility
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To minimize environmental risk
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To evaluate socio-economic aspect
