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FDIC Technical Examination Exam Practice Questions and Answers 100% Pass $12.49   Add to cart

Exam (elaborations)

FDIC Technical Examination Exam Practice Questions and Answers 100% Pass

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Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/10 What is the formula for calculating CET1 Capital? - ANSWER-Common Stock + Surplus Net of Treasury Stock + Retained Earnings + AOCI + (Regulatory Deductions/ Adjustments) + CET1 Non Controlling Minority Interest What ...

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  • November 26, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • FDIC
  • FDIC
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EmillyCharlotte
FDIC Technical Examination Exam Practice
Questions and Answers 100% Pass


What are the four purposes of Capital? - ANSWER✔✔-1. Absorb Losses


2. Promote Public Confidence


3. Restrict Excessive Asset Growth


4. Protect Depositors and the Deposit Insurance Fund


What are Basel III Capital Standards designed to do? - ANSWER✔✔-To

strengthen the quality and quantity of bank capital and promote a stronger

financial industry that is more resilient to economic stress


Who do Basel III standards apply to? - ANSWER✔✔-All FDIC insured

depository institutions


What is emphasized by Basel III standards as the predominant form of

bank capital? - ANSWER✔✔-Common Equity Tier 1 Capital


What is the most loss absorbing form of capital? - ANSWER✔✔-Common

Equity Tier 1 Capital

Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/10

, Why is Common Equity Tier 1 Capital widely recognized as the most loss-

absorbing form of capital? - ANSWER✔✔-It is permanent and places

shareholders' funds at risk of loss in the event of insolvency


Where can you find the capital rules for all FDIC supervised institutions? -

ANSWER✔✔-Part 324 of of the FDIC rules and regulations


What are the four purposes of Part 324 of the FDIC rules and regulations? -

ANSWER✔✔--Defines capital elements


- Establishes risk-weighting guidelines for determining capital

requirements under the standardized and advanced approaches


-Sets PCA standards that prescribe supervisory action for institutions that

are not adequately capitalized


-Establishes requirements to maintain a capital conservation buffer that

affects capital distributions and discretionary payments


What are the components of regulatory capital? - ANSWER✔✔-- Common

equity tier 1 capital


- Additional tier 1 capital



Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/10

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