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AIWMI Exam CCRA-L2 Topic 3 Question 57 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 57
Topic #: 3
[All CCRA-L2 Questions]

Bank A has an imaginary portfolio of USD 1000 Million distributed towards following four entities:

Bank A is stipulated to maintain a capital adequacy ratio of 11% on its risk weighted assets. It is being stipulated that the ratings for all the four entities is expected to be downgraded by 1 notch each. Estimate the amount of new capital required for Bank A?

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Suggested Answer: D

by Vincenza at Aug 22, 2022, 06:44 AM

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Gary
12 days ago
Alright, time to put on my accounting hat and get to work. Gotta make sure I don't end up with a capital shortfall and a visit from the regulators!
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Jenise
13 days ago
This reminds me of that time I tried to balance my checkbook. I ended up with a negative balance and a headache. Thankfully, I'm not the one running the bank here!
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Nu
24 days ago
Let's see, USD 93.5 million sounds reasonable. Gotta love these financial puzzles, they really make you think!
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Sharen
3 days ago
I agree, USD 93.5 million seems like the right answer. These calculations can be tricky.
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Eric
27 days ago
Interesting problem. I wonder if the bank's portfolio is heavily weighted towards the higher-risk entities. That could significantly impact the capital needed.
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Hyman
1 days ago
User 2: A) USD 93.5 Million
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Caitlin
8 days ago
User 1: I think the bank's portfolio might be heavily weighted towards the higher-risk entities.
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Tu
1 months ago
Hmm, the key here is understanding how a downgrade in ratings affects the risk-weighted assets. Looks like we need to crunch some numbers to get the correct capital requirement.
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Lizette
B) USD 38.5 Million
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Yuki
1 days ago
I think the new capital required would be USD 93.5 Million.
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Teddy
3 days ago
A) USD 93.5 Million
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Loreta
13 days ago
The capital adequacy ratio is crucial for the bank's stability.
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Leonora
21 days ago
B) USD 38.5 Million
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Brock
28 days ago
I think we need to calculate the new risk-weighted assets after the downgrade.
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Olen
29 days ago
A) USD 93.5 Million
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Arlette
2 months ago
But if the ratings are downgraded, the risk weighted assets will increase, so more capital will be required.
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Phuong
2 months ago
I disagree, I believe the answer is D) USD 850 Million.
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Arlette
2 months ago
I think the answer is A) USD 93.5 Million.
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