CQIB EXAM 2026 PREMIUM REVIEW SET
WITH DETAILED ANSWER KEY
◉Liabilities of a Bank. Answer: Interest Bearing Liabilities
-Transaction deposits
-Savings deposits
-Investment deposits
-Other demand deposits
-Debt issues
Equity-
Share Capital
◉Basel III liquidity reforms. Answer: The Basel III liquidity reforms
involve two new quantitative measures ― a 30-day Liquidity
Coverage Ratio (LCR) to address an acute stress scenario and a Net
Stable Funding Ratio (NSFR) to encourage longer-term funding
resilience.
◉Liquidity Coverage Ratio (LCR). Answer: Requires Australian ADIs
to
, hold sufficient liquid assets to
meet 30 day net cash outflows
projected under an APRA prescribed stress scenario
◉Net Stable Funding Ratio (NSFR). Answer: Will require Australian
ADIs
to fund their assets with
sufficient stable funding
to reduce funding risk
over a one-year horizon as
prescribed by APRA.
◉Capital Adequacy Requirements. Answer: A bank's capital, in its
simplest form, represents its ability to withstand losses without
becoming insolvent and managing risk.
The Australian Prudential Regulation Authority (APRA) makes and
enforces the rules which govern the capital adequacy of Australian
banks.
◉Tier 1 capital. Answer: includes ordinary shares and retained
earnings (profits not dispersed to shareholders);
can also include specific types of preference shares and convertible
securities.
WITH DETAILED ANSWER KEY
◉Liabilities of a Bank. Answer: Interest Bearing Liabilities
-Transaction deposits
-Savings deposits
-Investment deposits
-Other demand deposits
-Debt issues
Equity-
Share Capital
◉Basel III liquidity reforms. Answer: The Basel III liquidity reforms
involve two new quantitative measures ― a 30-day Liquidity
Coverage Ratio (LCR) to address an acute stress scenario and a Net
Stable Funding Ratio (NSFR) to encourage longer-term funding
resilience.
◉Liquidity Coverage Ratio (LCR). Answer: Requires Australian ADIs
to
, hold sufficient liquid assets to
meet 30 day net cash outflows
projected under an APRA prescribed stress scenario
◉Net Stable Funding Ratio (NSFR). Answer: Will require Australian
ADIs
to fund their assets with
sufficient stable funding
to reduce funding risk
over a one-year horizon as
prescribed by APRA.
◉Capital Adequacy Requirements. Answer: A bank's capital, in its
simplest form, represents its ability to withstand losses without
becoming insolvent and managing risk.
The Australian Prudential Regulation Authority (APRA) makes and
enforces the rules which govern the capital adequacy of Australian
banks.
◉Tier 1 capital. Answer: includes ordinary shares and retained
earnings (profits not dispersed to shareholders);
can also include specific types of preference shares and convertible
securities.
