Bank fin management ques

Calculation of forward contract/cancellation/rebooking

Classification of current accounts-15% of current balances are classified in 28 days

bracket

CRAR calculation-market risk-50 cr equities, 30cr –options

Total assets excluding retail assets-2000cr, retail assets 100cr

Notional due date of a usance bill

OTC market doesn’t include-forward contracts

4 adults travelling to Singapore can take -2000 in travel currency and coins or 40000

Foreign currency notes and coins:

3000 to all other countries
5000 in Libya
Entire amount in Russia and Iran

Foreign currency--10,000 on a personal visit for per year/per visit

Business visit—25000

You can keep 2000 $ notes retained from a visit

Coins-unlimited

In Spot rate, the settlement of funds is done on the 2nd working day of both countries.
Eg. Deal date-5th Oct, settlement would occur of 7th oct. if 7th oct, is a holiday in one
of the countries, it would be done on the next working day in both countries.

Ready or cash-settlement of funds is done the same date i.e date of deal

Tom: settlement of funds is done on next working day.

If the delivery is to be done on a date after the spot date, ie. After 2 days, it is a
forward contract.

Difference b/w forward contract and a futures contract.

Margin for a futures contract is daily MTM?

If a client says that it has not entered into a Forward contract/agreement and the bank
says that it has, it can be proved by :
a. voice recording
b. by saying that it has done so in the past
c. showing internal approval for the same
d. by

GAP risks are called interest rate risks.

Import bills have to be crystallised within
- 10 days of making the payment otherwise, Dubai ports would be filled up with
containers, and nobody to pick them up.

Sight bills drawn under import l/c would be crystallised on the 10th day after the date
of receipt, if not yet paid.

All forward contracts which have matured and not picked up, automatically stands
cancelled on the 7th day of the day of maturity.
All cancellation shall be done at opposite rates, eg. If TT BUY, cancellation by TT
sell

2% penalty above prime currency LIBOR/mibor to be paid for delay in offering credit
to customer

FCNR is not permitted in :

USD
AUD
HONG KONG DOLLLARS
CAD

Who is a returning Indian? If you work abroad for 2 yrs and come back to India, are
you a returning Indian or a resident Indian?

STAND-BY LETTERS OF CREDIT.

ACU countries:
Myanmar
Iran
Bangladesh
Burma
Pakistan
Sri lanka
Maldives
Nepal-is a member, but excluded.

ACU Dollar a/c or euro account

Solve illustration on page 116. PCL , shipment credit.

From risk management view point, bank business lines can be classified as:

Banking book-deposit, advances,borrowings

Trading book-marketable
Off balance sheet-Bank guarantee, letter of credit.

What is Basis risk/yield curve risk pg.189