AIWMI Exam CCRA-L2 Topic 3 Question 57 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 57
Topic #: 3

Bank A has an imaginary portfolio of USD 1000 Million distributed towards following four entities:

Bank A is stipulated to maintain a capital adequacy ratio of 11% on its risk weighted assets. It is being stipulated that the ratings for all the four entities is expected to be downgraded by 1 notch each. Estimate the amount of new capital required for Bank A?

AUSD 93.5 Million

BUSD 38.5 Million

CUSD 55 Million

DUSD 850 Million

Show Suggested Answer

Suggested Answer: D

by Vincenza at Aug 22, 2022, 06:44 AM

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Gary

29 days ago

Alright, time to put on my accounting hat and get to work. Gotta make sure I don't end up with a capital shortfall and a visit from the regulators!

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Jenise

30 days ago

This reminds me of that time I tried to balance my checkbook. I ended up with a negative balance and a headache. Thankfully, I'm not the one running the bank here!

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Dexter

23 hours ago

I agree, it seems like the right choice.

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Markus

3 days ago

I think the answer might be USD 93.5 Million.

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Elliott

7 days ago

I can relate! Balancing finances can be tricky.

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Nu

1 months ago

Let's see, USD 93.5 million sounds reasonable. Gotta love these financial puzzles, they really make you think!

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Karol

17 days ago

I think it's USD 93.5 million too. It's all about understanding the numbers.

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Sharen

20 days ago

I agree, USD 93.5 million seems like the right answer. These calculations can be tricky.

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Eric

1 months ago

Interesting problem. I wonder if the bank's portfolio is heavily weighted towards the higher-risk entities. That could significantly impact the capital needed.

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Rosalind

9 days ago

User 3: B) USD 38.5 Million

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Hyman

18 days ago

User 2: A) USD 93.5 Million

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Caitlin

25 days ago

User 1: I think the bank's portfolio might be heavily weighted towards the higher-risk entities.

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Tu

2 months ago

Hmm, the key here is understanding how a downgrade in ratings affects the risk-weighted assets. Looks like we need to crunch some numbers to get the correct capital requirement.

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