Current Affairs · Prudential Norms & Concentration Risk Management
Under the revised Concentration Risk Management norms for banks, which of the following statements regarding Capital Market Exposures (CME) and prudential ceilings is/are correct? 1. The total Capital Market Exposure (CME), encompassing both direct and indirect exposures, must not exceed 40% of the bank's Tier 1 capital. 2. Direct investment exposures in the capital market are specifically capped at 20% of the bank's eligible capital base. 3. For the purpose of monitoring concentration risk, direct investments are measured at their current market value, while credit exposures are taken as the sanctioned limit or the outstanding amount, whichever is higher. Select the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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1 and 2 only
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