- 20 Marks
RM – APR 2024 – L4 – Q3 – Recapitalisation and Capital Management
Recommends sources for recapitalisation post-DDEP, explains Regulatory and Economic Capital, and their differences.
Question
(a) Bank of Ghana has requested the various Commercial Banks to come up with proposals for Recapitalisation following the effects of the Domestic Debt Exchange Programme (DDEP).
Recommend to your Board the various sources for this Recapitalisation, explaining how feasible these are to obtain regulatory approval. (10 marks)
(b) Explain Regulatory Capital, emphasizing how it is computed and its relevance in the Capital Management Scheme of a bank’s ALCO. (5 marks)
(c) Explain Economic Capital. Distinguish Economic Capital from Regulatory Capital.(5 marks)
[Total: 20 marks]
Find Related Questions by Tags, levels, etc.
- Tags: BoG, DDEP, Economic Capital, Recapitalisation, Regulatory Capital
- Level: Level 4
- Topic: CREDIT RISK MANAGEMENT
- Series: APR 2024
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