Question 1
Under the Basel framework, a bank's Common Equity Tier 1 (CET1) capital ratio is calculated as CET1 capital divided by which denominator?
Correct Answer:
Total risk-weighted assets (RWA)
Question 2
In the Basel internal ratings-based (IRB) approach, the expected loss (EL) on a credit exposure is most commonly expressed as which product?
Correct Answer:
PD multiplied by LGD multiplied by EAD
Question 3
IFRS 9 classifies loans into three stages for impairment. A performing loan with no significant increase in credit risk since origination sits in which stage, and over what horizon is its expected credit loss measured?
Correct Answer:
Stage 1, 12-month ECL
Question 4
When a loan experiences a significant increase in credit risk (SICR) since initial recognition but is not yet credit-impaired, IFRS 9 requires it to move to which stage?
Correct Answer:
Stage 2 with lifetime ECL
Question 5
The Liquidity Coverage Ratio (LCR) under Basel III requires a bank to hold enough high-quality liquid assets (HQLA) to cover net cash outflows over what stress horizon?
Correct Answer:
30 calendar days
Question 1
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Prepare with the IFoA SA10 Practice Questions - IFoA SA10 Banking Specialist Advanced Exam practice quiz. This question bank includes 100 questions covering bank, risk, basel, capital, and loss. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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IFoA SA10 Practice Questions - IFoA SA10 Banking Specialist Advanced Exam

This practice set contains 100 questions from the matching question bank and focuses on bank, risk, basel, capital, and loss. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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