Standard Chartered Compliance and Regulatory Manager Interview Questions and Answers

Off balance sheet items in banks are financial instruments or contingent liabilities that do not appear on the bank's balance sheet.

• Loan commitments

• Letters of credit

• Derivatives contracts

• Securitization transactions

• Standby letters of credit

A forward rate agreement (FRA) is a financial contract between two parties to exchange interest rate payments based on a specified notional amount and a predetermined interest rate.

• FRA is a derivative contract where one party agrees to pay a fixed interest rate while the other party agrees to pay a floating interest rate based on a notional amount.

• It helps in hedging against interest rate risk by locking in a future in...read more

LCR & NSFR are regulatory requirements that banks must meet to ensure they have enough liquidity to withstand financial stress.

• LCR stands for Liquidity Coverage Ratio and measures a bank's ability to meet its short-term obligations with high-quality liquid assets.

• NSFR stands for Net Stable Funding Ratio and assesses a bank's long-term stability by comparing available stable funding to required stable funding.

• The pu...read more