Test Your Understanding of Banking Unit Regulations in International Financial S...
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Questions and Answers

What is the minimum capital required for a Parent Bank to set up a Banking Unit in an International Financial Services Centre?

  • USD 20 million (correct)
  • USD 10 million
  • USD 15 million
  • USD 25 million

    • What is the maximum number of Banking Units that a Parent Bank can establish in each International Financial Services Centre?

  • Two
  • One (correct)
  • Four
  • Three

    • What is the purpose of a No Objection Letter required from a Parent Bank's home regulator for setting up a Banking Unit in an International Financial Services Centre?

  • To guarantee the profitability of the BU
  • To ensure that the Parent Bank has enough liquidity to support the operations of the BU
  • To assess the Parent Bank's compliance with regulatory requirements
  • To confirm that the Parent Bank has no objection to the BU's operations (correct)

    • What is the minimum capital required for a Parent Bank to set up a Banking Unit in an International Financial Services Centre?

    <p>USD 20 million</p> Signup and view all the answers

    What is the maximum number of Banking Units that a Parent Bank can establish in each International Financial Services Centre?

    <p>One</p> Signup and view all the answers

    What is the purpose of a No Objection Letter required from a foreign bank's home regulator regarding setting up of the Banking Unit in the International Financial Services Centre?

    <p>To confirm approval for setting up the BU</p> Signup and view all the answers

    What is the Liquidity Coverage Ratio and who is responsible for maintaining it?

    <p>The Banking Unit is responsible for maintaining the Liquidity Coverage Ratio</p> Signup and view all the answers

    What is the Net Stable Funding Ratio and who is responsible for maintaining it?

    <p>The Banking Unit is responsible for maintaining the Net Stable Funding Ratio</p> Signup and view all the answers

    What are the norms and guidelines relating to leverage ratio and who is responsible for adhering to them?

    <p>The Authority is responsible for determining the norms and guidelines relating to leverage ratio</p> Signup and view all the answers

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