Material For Banking Interview Preparation 11

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Interview Preparation Material Set 11 is here. Have a look

IBPS-PO/Clerk Interview Preparation Material : Set-11

Core Banking Solutions (CBS) : Core Banking Solutions (CBS) or Centralized Banking Solutions is the process which is completed in a centralized environment i.e. under which the information relating to the customer’s account (i.e. financial dealings, profession, income, family members etc.) is stored in the Central Server of the bank (that is available to all the networked branches) instead of the branch server. Depending upon the size and needs of a bank, it could be for the all the operations or for limited operations. This task is carried through advance software by making use of the services provided by specialized agencies.
Due to its benefits, a no. of banks in India in recent years have taken steps to implement the CBS with a view to build relationship with the customer based on the information captured and offering to the customer, the customized financial products according to their need.
Advantages: The CBS process is advantageous both to the customers and the banks in the following manner:
Customer:
1.Transaction of business from any branch, ATM that offers him anytime anywhere banking facility.
2. Lower incidence of errors. Hence accuracy in transactions.
3. Better funds management due to immediate availability of funds.
Banks:
1. Standardization of process within the bank.
2. Better customer service leading to retention of customer and increased customer traffic.
3. Availability of accurate data & Better use of available infrastructure
4. Better MIS and reporting to external agencies such as Govt., RBI etc.
5. Increased business volume with better asset liability management and risk management.

2. Camels Rating: Measure of the relative soundness of a bank. CAMELS ratings-the term stands for Capital, Assets management, earnings, Liquidity and sensitivity to market risk-are calculated on a 1-5 scale, and is used by bank supervisory agencies to evaluate bank condition. A rating of 1 is given to banks with the strongest performance ratings; banks given a CAMELS rating of 4 or 5 are placed on the watch list of banks in need of supervisory attention. Individual CAMELS ratings are disclosed to bank management, though not to the general public.

Capital Adequacy Ratio: Capital adequacy ratios (CARs) are a measure of the amount of a bank’s core capital expressed as a percentage of its risk-weighted asset.

Capital adequacy ratio is defined as:

Frequently asked Questions No 1
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Frequently Asked Questions No 9
Frequently ASked Questions No 10

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