What does a high CRAR indicate about a bank's financial health? Option: "The bank has a high level of non-performing assets", "The bank is highly profitable", "The bank has a low debt level", "The bank has a strong capital buffer to absorb potential losses"

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What does a high CRAR indicate about a bank's financial health?

"The bank has a high level of non-performing assets"

"The bank is highly profitable"

"The bank has a low debt level"

"The bank has a strong capital buffer to absorb potential losses"

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What does CRAR stand for in banking terminology?

"Capital Reserve Allocation Ratio"

"Credit Risk Assessment Ratio"

"Capital Adequacy Ratio"

"Core Revenue Adjustment Rate"

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What does a high Provision Coverage Ratio (PCR) indicate about a bank?

The bank relies heavily on CASA deposits as its primary source of funds

The bank has a high proportion of retail loans compared to corporate loans

The bank is prudent and conservative in managing potential loan losses

The bank is aggressive in its lending practices and takes on higher risks

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How does the concept of risk-weighted assets influence a bank's capital adequacy ratio?

"Risk-weighted assets are not considered in capital adequacy calculations."

"Lower risk-weighted assets necessitate higher capital to ensure adequacy."

"Higher risk-weighted assets require lower capital to maintain adequacy."

"Risk-weighted assets directly determine the bank's minimum capital requirement."

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What does a high CASA ratio indicate for a bank?

"The bank has a large amount of low-cost deposits"

"The bank relies heavily on expensive external funding"

"The bank has a high proportion of non-performing assets"

"The bank has a high risk of failure"

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What is the relationship between Credit Risk Value (CRV) and potential credit risk?

"Lower CRV indicates lower credit risk"

"CRV is not related to credit risk"

"Higher CRV indicates higher credit risk"

"Higher CRV indicates lower credit risk"