RBB Assistant Manager flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Class A bank

A commercial bank licensed under BAFIA and supervised by Nepal Rastra Bank, permitted the widest range of banking services including deposits, lending, remittance and foreign exchange.

Credit-Deposit Ratio

Total loans and advances divided by total deposits, multiplied by 100. It shows how much of the deposit base is deployed as credit and signals liquidity and lending capacity.

CRR

Cash Reserve Ratio: the percentage of customer deposits a bank must hold as a balance with Nepal Rastra Bank. It earns no interest and constrains lendable funds.

SLR

Statutory Liquidity Ratio: the share of deposits that must be held in approved liquid assets such as government securities and NRB bonds, ensuring a buffer of readily realizable funds.

Net Interest Margin

Interest income minus interest expense, divided by average earning assets, times 100. It measures how profitably the bank intermediates between depositors and borrowers.

Five Cs of credit

Character, Capacity, Capital, Collateral and Conditions. Capacity, the borrower's ability to repay from cash flow, is the primary test; collateral is secondary protection.

DSCR

Debt Service Coverage Ratio: net operating income divided by total debt service. A ratio of 1.25 or above is commonly accepted as adequate for term loan repayment.

Loan-to-Value ratio

Loan amount divided by the appraised value of collateral, times 100. A lower ratio gives the bank a larger collateral cushion if the borrower defaults.

Working capital turnover method

Permissible bank finance equals current assets minus current liabilities other than bank borrowings, adjusted for the operating cycle. It estimates the short-term funding a business needs.

Non-performing loan

A loan classified as Substandard, Doubtful or Bad under NRB norms, typically after overdue periods. Higher classification grades require progressively larger loan loss provisions.

Two-factor authentication

Authentication using two independent factors, such as a PIN the customer knows plus an OTP sent to a device the customer holds. It reduces risk from stolen passwords.

Real-time gross settlement

A payment system that settles each high-value interbank transfer individually and immediately in central bank money, eliminating settlement lag and interbank credit risk.

Digital onboarding CDD

Identity verification, liveness checks and risk screening performed remotely before an account becomes fully operational. It must meet the same KYC standards as branch onboarding.

Transaction velocity check

A fraud control that flags unusual frequency, amount or timing of transactions against a customer's normal pattern, triggering a hold or alert for review.

Debit versus credit card

A debit card draws directly on the customer's deposit balance, while a credit card extends a revolving borrowing limit that must be repaid with interest if unpaid.

Chargeback

A formal card dispute in which the issuing bank reverses a transaction and the acquirer or merchant must respond with evidence within scheme deadlines.

3-D Secure

An authentication protocol for card-not-present payments that redirects the cardholder to the issuer for verification, shifting fraud liability to the issuing bank when applied.

Inward remittance

Money sent from abroad to a beneficiary in Nepal through a licensed channel. It is a major source of foreign exchange and is subject to AML screening and identification rules.

Prepaid card

A card loaded with stored value in advance and not linked to a deposit account. Spending is limited to the loaded balance, and expiry and refund rules follow issuer terms.

Nepal Rastra Bank

The central bank of Nepal and the primary regulator of banks and financial institutions. It licenses institutions, sets prudential norms, inspects, and enforces compliance.

BAFIA

The legal framework governing banks and financial institutions in Nepal, covering licensing, capital, governance, supervision and enforcement by the central bank.

Compliance function

An independent control function that identifies regulatory obligations, monitors adherence, and reports to the board or its committee rather than to business management.

Suspicious Transaction Report

A confidential report filed with the Financial Information Unit when a transaction appears linked to money laundering or terrorist financing. Tipping off the customer is prohibited.

Single borrower exposure limit

A prudential cap on total credit and facilities extended to one borrower group, expressed as a percentage of the bank's capital, limiting concentration risk.

Know Your Customer

The process of identifying a customer, verifying identity with reliable documents, understanding the purpose of the relationship, and conducting ongoing due diligence.

Politically exposed person

A person entrusted with prominent public functions, and their close associates. Such customers require senior management approval, source-of-funds checks and enhanced monitoring.

Enhanced due diligence

Additional scrutiny applied to high-risk customers, including deeper source-of-wealth verification, senior sign-off, and more frequent review of transaction activity.

Structuring

Splitting transactions into smaller amounts to stay below reporting or threshold limits. It is a classic money laundering red flag and is itself reportable.

Span of control

The number of subordinates directly reporting to one manager. A wider span flattens the organization but reduces the depth of supervision possible.

SMART objectives

Objectives that are Specific, Measurable, Achievable, Relevant and Time-bound. They form the basis for performance targets and appraisal.

Delegation of authority

Assigning a task and the authority to complete it to a subordinate. Accountability for the outcome remains with the manager who delegated.

SERVQUAL reliability

The service quality dimension reflecting consistent, dependable and accurate delivery of the promised service. It is generally rated the most important dimension by customers.