AIWMI Exam CCRA-L2 Topic 3 Question 57 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 57
Topic #: 3

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?

AUSD 93.5 Million

BUSD 38.5 Million

CUSD 55 Million

DUSD 850 Million

Show Suggested Answer

Suggested Answer: D

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

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Arlette

8 days ago

But if the ratings are downgraded, the risk weighted assets will increase, so more capital will be required.

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Phuong

13 days ago

I disagree, I believe the answer is D) USD 850 Million.

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Arlette

16 days ago

I think the answer is A) USD 93.5 Million.

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