CQIB EXAM 2026 COMPLETE QUESTION
DIGEST WITH CORRECT SOLUTIONS
◉What does the The Australian Prudential Regulation Authority
CAPRA do?. Answer: Makes and enforces the rules which govern the
capital adequacy of Australian banks to ensure they meet their
financial promises to depositors, policyholders and fund members
within a stable, efficient and competitive financial system.
◉How is Australian Banks regulatory capital calculated?. Answer:
Sum of its Tier 1 & Tier 2 Capital.
◉Explain Tier 1 & Tier 2 Capital. Answer: Tier 1 capital - includes
ordinary shares and retained earnings (profits not dispersed to
shareholders); can also include specific types of preference shares
and convertible securities.
Tier 2 capital - funding sources that rank below a bank's depositors
and other senior creditors, i e. subordinated debt; provides
depositors with an additional layer of loss protection after a bank's
Tier 1 capital is exhausted.
, ◉BANK HISTORY: 1800s and early 1900s. Answer: The, first bank in
Australia was the Bank of NSW, establisl1ed in 1817 in Sydney.
The discovery of gold in 1851 led to the minting of Australia's own
gold coins and spurred the development of banking.
A speculative boom in the Australian property market in the 1800s
led to the Australian banking crisis of 1893. This was in an
environment where little government control or regulation of banks
had been established and led to the failure of 11 commercial banks.
◉BANK HISTORY: 1910 -1920. Answer: The Australian Pound was
issued as the legal tender in Australia and the Australian Notes act of
1910 assigned responsibility for the issue of bank notes to the
Commonwealth Treasury.
◉BANK HISTORY: 1920. Answer: The Commonwealth Bank
performed some central bank functions, which were greatly
expanded during World War II.
◉BANK HISTORY: 1911 -1913. Answer: In 1911 the federal
government established the Commonwealth Bank, which by 1913
had branches in all six states
◉BANK HISTORY: 1930 -1931. Answer: The Great Depression of the
1930s brought a string of bank failures. In 1931, the Commonwealth
bank took over two faltering state savings banks. By the end of the
Depression era, banking in Australia had become tightly regulated.
DIGEST WITH CORRECT SOLUTIONS
◉What does the The Australian Prudential Regulation Authority
CAPRA do?. Answer: Makes and enforces the rules which govern the
capital adequacy of Australian banks to ensure they meet their
financial promises to depositors, policyholders and fund members
within a stable, efficient and competitive financial system.
◉How is Australian Banks regulatory capital calculated?. Answer:
Sum of its Tier 1 & Tier 2 Capital.
◉Explain Tier 1 & Tier 2 Capital. Answer: Tier 1 capital - includes
ordinary shares and retained earnings (profits not dispersed to
shareholders); can also include specific types of preference shares
and convertible securities.
Tier 2 capital - funding sources that rank below a bank's depositors
and other senior creditors, i e. subordinated debt; provides
depositors with an additional layer of loss protection after a bank's
Tier 1 capital is exhausted.
, ◉BANK HISTORY: 1800s and early 1900s. Answer: The, first bank in
Australia was the Bank of NSW, establisl1ed in 1817 in Sydney.
The discovery of gold in 1851 led to the minting of Australia's own
gold coins and spurred the development of banking.
A speculative boom in the Australian property market in the 1800s
led to the Australian banking crisis of 1893. This was in an
environment where little government control or regulation of banks
had been established and led to the failure of 11 commercial banks.
◉BANK HISTORY: 1910 -1920. Answer: The Australian Pound was
issued as the legal tender in Australia and the Australian Notes act of
1910 assigned responsibility for the issue of bank notes to the
Commonwealth Treasury.
◉BANK HISTORY: 1920. Answer: The Commonwealth Bank
performed some central bank functions, which were greatly
expanded during World War II.
◉BANK HISTORY: 1911 -1913. Answer: In 1911 the federal
government established the Commonwealth Bank, which by 1913
had branches in all six states
◉BANK HISTORY: 1930 -1931. Answer: The Great Depression of the
1930s brought a string of bank failures. In 1931, the Commonwealth
bank took over two faltering state savings banks. By the end of the
Depression era, banking in Australia had become tightly regulated.
