Which of the following is NOT a factor considered by RBI when deciding whether to place a bank under PCA? Option: "Market Share", "Profitability", "Asset Quality", "Debt Level"

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Which of the following is NOT a factor considered by RBI when deciding whether to place a bank under PCA?

"Market Share"

"Profitability"

"Asset Quality"

"Debt Level"

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Which of the following actions might RBI take as part of its discretionary measures under PCA?

"Nationalize the bank without any compensation to shareholders"

"Require the bank to reassess its business model and strategy"

"Prohibit the bank from lending any further funds"

"Force the bank to close down immediately"

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What metric does RBI primarily use to assess a bank's profitability under the PCA framework?

"Return on Assets (ROA)"

"Net Interest Margin (NIM)"

"Return on Equity (ROE)"

"Earnings Per Share (EPS)"

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What does PCA stand for in the context of banking regulation?

"Proactive Consolidation Agenda"

"Prompt Corrective Action"

"Periodic Credit Analysis"

"Preemptive Capital Assessment"

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What is the primary purpose of the PCA framework?

"To promote mergers and acquisitions in the banking sector"

"To address financial weaknesses in banks before they escalate"

"To punish banks for poor performance"

"To encourage banks to invest in new technologies"

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What is the potential benefit of PCA for depositors of a bank?

"PCA allows depositors to withdraw their funds without any restrictions"

"PCA can help improve the long-term stability and health of the bank"

"PCA guarantees that depositors will not lose any money"

"PCA ensures that the bank will continue to pay high interest rates on deposits"