Business Environment and Internal Control Factors (BEICFs) Over a time, the process and the outcomes of BEICFs should be validated through comparison to actual internal loss experience, relevant external data, […]
Bank Audit - 6. page
ICAAP process (Internal Capital Adequacy Assessment Process)
ICAAP process (Internal Capital Adequacy Assessment Process) The objectives of Internal Capital Adequacy Assessment Process (ICAAP) process are as follows: (i) Create a transparent and consensual general framework for assessment […]
Capital to Risk-weighted Assets Ratio (CRAR)
Capital to Risk-weighted Assets Ratio (CRAR) The RBI requires banks to maintain a minimum CRAR of 9 per cent on an ongoing basis. The Master Circular on Capital Adequacy contains […]
Board Oversight
Board Oversight The board of directors and senior management of each subsidiary/overseas branch should be responsible for conducting their own assessment of the subsidiary’s/overseas branch’s operational risks and controls and […]
The underlying purpose of Basel
The underlying purpose of Basel Basel capital adequacy norms are meant for the protection of depositors and shareholders by prescriptive rules for measuring capital adequacy, thereby evolving methods of determining […]
Guidelines on BASEL III Capital Regulations
Guidelines on BASEL III Capital Regulations The RBI had issued a circular no. DBOD.No.BP.BC.98 /21.06.201/2011-12 dated May 2, 2012 on the subject “Guidelines on Implementation of Basel III Capital Regulations […]
Components of Capital
Components of Capital Total regulatory capital will consist of the sum of the following categories: (i) Tier 1 Capital (going-concern capital) (a) Common Equity Tier 1 (b) Additional Tier 1 […]
Limits and Minima
Limits and Minima : Regulatory Capital As % to RWAs (i) Minimum Common Equity Tier 1 Ratio 5.5 (ii) (ii) Capital Conservation Buffer (comprised of Common Equity) 2.5 (iii) […]
Other Matters
Other Matters Besides the above matters, the auditor is also expected to comment on the following: Comments on accounting policies, if any, including comments on changes in accounting policies […]
Introduction Of Basel
Introduction Of Basel Capital is the starting point for any business and, similarly, in a bank, capital is one of the most critical factors which decide its financial soundness. In […]