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100+ Free IFoA SA10 Practice Questions

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Key Facts: IFoA SA10 Exam

B200

ASSA Subject Code

IFoA banking curriculum

ASSA

Delivering Body

IFoA SP10/SA10 FAQ

Typed

Online-Invigilated Format

IFoA SA10 page

ZAR

Fee Currency

IFoA SP10/SA10 FAQ

100

Practice Questions

OpenExamPrep

SP10

Prerequisite Subject

IFoA banking curriculum

As of June 2, 2026, SA10 (Banking Specialist Advanced) is delivered by the Actuarial Society of South Africa (ASSA) as its B200 Banking Applications subject; IFoA candidates on the banking pathway study and sit SA10 directly with ASSA. The exam is online-invigilated with all answers typed, so it is not a multiple-choice test. ASSA sets exam fees in South African Rand (ZAR), and neither the IFoA nor ASSA publishes a fixed question count or pass mark, with the pass standard set each session. SA10 builds on the Banking Specialist Principles subject (SP10 / ASSA B100) and assumes a working knowledge of Basel capital, IFRS 9 and bank balance-sheet management. This bank provides 100 multiple-choice questions as advanced-knowledge prep across the syllabus.

Sample IFoA SA10 Practice Questions

Try these sample questions to test your IFoA SA10 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Basel framework, a bank's Common Equity Tier 1 (CET1) capital ratio is calculated as CET1 capital divided by which denominator?
A.Total risk-weighted assets (RWA)
B.Total liabilities plus equity
C.Tier 1 plus Tier 2 capital
D.Total assets
Explanation: Regulatory capital ratios are expressed relative to risk-weighted assets, which scale each exposure by a risk weight reflecting its riskiness. The CET1 ratio equals CET1 capital divided by total RWA, with a Pillar 1 minimum of 4.5%.
2In the Basel internal ratings-based (IRB) approach, the expected loss (EL) on a credit exposure is most commonly expressed as which product?
A.LGD multiplied by maturity
B.PD multiplied by LGD multiplied by EAD
C.PD plus LGD plus EAD
D.PD divided by LGD
Explanation: Regulatory expected loss is the product of the probability of default (PD), loss given default (LGD), and exposure at default (EAD). This decomposition underpins both IRB capital and the building blocks of IFRS 9 ECL modelling.
3IFRS 9 classifies loans into three stages for impairment. A performing loan with no significant increase in credit risk since origination sits in which stage, and over what horizon is its expected credit loss measured?
A.Stage 3, lifetime ECL
B.Stage 1, lifetime ECL
C.Stage 1, 12-month ECL
D.Stage 2, 12-month ECL
Explanation: Stage 1 captures exposures that have not experienced a significant increase in credit risk (SICR) since initial recognition. Their loss allowance is measured at 12-month ECL, the portion of lifetime losses from default events possible within 12 months.
4When a loan experiences a significant increase in credit risk (SICR) since initial recognition but is not yet credit-impaired, IFRS 9 requires it to move to which stage?
A.Stage 3 with lifetime ECL
B.It is derecognised
C.Stage 1 with 12-month ECL
D.Stage 2 with lifetime ECL
Explanation: A SICR triggers transfer from Stage 1 to Stage 2. The loss allowance is then measured at lifetime ECL even though the loan is still performing, because the probability of eventual default has risen materially.
5The Liquidity Coverage Ratio (LCR) under Basel III requires a bank to hold enough high-quality liquid assets (HQLA) to cover net cash outflows over what stress horizon?
A.30 calendar days
B.90 days
C.One year
D.7 days
Explanation: The LCR ensures a bank holds sufficient unencumbered HQLA to survive a 30-calendar-day liquidity stress scenario. The ratio (HQLA divided by net cash outflows over 30 days) must be at least 100%.
6The Net Stable Funding Ratio (NSFR) is designed to promote resilience over which horizon and is defined as which ratio?
A.30 days; HQLA over net outflows
B.One year; available stable funding over required stable funding
C.One year; required stable funding over available stable funding
D.90 days; Tier 1 capital over RWA
Explanation: The NSFR addresses structural, longer-term funding risk over a one-year horizon. It equals available stable funding (ASF) divided by required stable funding (RSF) and must be at least 100%, encouraging stable funding of less liquid assets.
7Economic capital differs from regulatory capital primarily because economic capital is intended to represent which quantity?
A.The amount of Tier 2 instruments outstanding
B.The legal minimum imposed by the supervisor
C.A bank's own internal estimate of capital needed to absorb unexpected losses at a chosen confidence level
D.The accounting book value of equity
Explanation: Economic capital is the institution's internal estimate of the capital required to remain solvent against unexpected losses at a target confidence level and horizon, reflecting its own risk appetite and diversification. Regulatory capital is the externally prescribed minimum.
8A bank holds a sovereign exposure that, under the Basel standardised approach, carries a 0% risk weight. If the exposure is 500 million, what is its contribution to risk-weighted assets?
A.50 million
B.500 million
C.250 million
D.0
Explanation: RWA equals exposure multiplied by the applicable risk weight. With a 0% risk weight, the RWA contribution is 500 million multiplied by 0%, which is zero. This is why high-quality sovereign holdings attract no Pillar 1 credit-risk capital under the standardised approach.
9The Basel large exposures framework generally limits a bank's exposure to a single counterparty or group of connected counterparties to what percentage of its Tier 1 capital?
A.25%
B.50%
C.100%
D.10%
Explanation: The large exposures framework caps the sum of all exposures to a single counterparty or connected group at 25% of eligible (Tier 1) capital, with a tighter 15% limit between global systemically important banks. The aim is to limit concentration and contagion risk.
10Within an Internal Capital Adequacy Assessment Process (ICAAP), which of the following best describes Pillar 2 of the Basel framework?
A.Minimum risk-based capital requirements for credit, market and operational risk
B.The supervisory review process under which banks assess and supervisors evaluate all material risks
C.Market discipline through public disclosure requirements
D.The leverage ratio backstop
Explanation: Pillar 2 is the supervisory review process. Banks identify and assess all material risks (including those not fully captured in Pillar 1, such as interest rate risk in the banking book and concentration risk) through the ICAAP, and supervisors review the adequacy of capital via the SREP.

About the IFoA SA10 Exam

The IFoA SA10 Banking Specialist Advanced exam, delivered by ASSA as its B200 Banking Applications subject, develops senior-manager-level expertise in applying actuarial principles to banking, spanning economic and regulatory capital, advanced risk modelling, IFRS 9 expected credit loss, ICAAP and ILAAP, stress testing, recovery and resolution, ALM and banking strategy.

Assessment

Online-invigilated written examination (typed answers) delivered by ASSA as B200 Banking Applications

Time Limit

Set by ASSA for each B200 session; see the ASSA exam timetable

Passing Score

No fixed pass mark is published; the pass standard is set each session by IFoA and ASSA

Exam Fee

Set by ASSA in South African Rand (ZAR); see the ASSA website for the current B200 fee (Institute and Faculty of Actuaries (IFoA), delivered by the Actuarial Society of South Africa (ASSA))

IFoA SA10 Exam Content Outline

20-25%

Economic and Regulatory Capital

Distinguish economic from regulatory capital and work with Basel CET1, Tier 1 and Tier 2, the capital conservation and countercyclical buffers, the leverage ratio, the output floor, large exposures, RORAC and capital allocation.

35-40%

Advanced Risk Modelling

Model credit risk with PD, LGD and EAD and the IRB formula, measure market risk using VaR and expected shortfall under FRTB, manage liquidity with the LCR and NSFR, and quantify operational risk through loss distributions and scenario analysis.

20-25%

IFRS 9, ICAAP/ILAAP and Stress Testing

Apply the three-stage expected credit loss model with significant increase in credit risk and forward-looking scenarios, build the ICAAP and ILAAP for Pillar 2, and run supervisory and reverse stress tests against capital and liquidity hurdles.

15-20%

ALM, Resolution and Banking Strategy

Manage interest rate risk in the banking book, funds transfer pricing and balance-sheet optimisation, prepare recovery and resolution plans with bail-in and TLAC/MREL, and evaluate banking mergers, acquisitions and strategy.

How to Pass the IFoA SA10 Exam

What You Need to Know

  • Passing score: No fixed pass mark is published; the pass standard is set each session by IFoA and ASSA
  • Assessment: Online-invigilated written examination (typed answers) delivered by ASSA as B200 Banking Applications
  • Time limit: Set by ASSA for each B200 session; see the ASSA exam timetable
  • Exam fee: Set by ASSA in South African Rand (ZAR); see the ASSA website for the current B200 fee

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

IFoA SA10 Study Tips from Top Performers

1Anchor your study in the Basel framework's three pillars, then layer economic capital, buffers, the leverage ratio and the output floor so capital questions become structured rather than memorised.
2Practise decomposing credit risk into PD, LGD and EAD, and be fluent moving between regulatory IRB (downturn, through-the-cycle) and IFRS 9 (unbiased, point-in-time, forward-looking) parameter conventions.
3Know the LCR and NSFR cold, including HQLA levels, run-off rates and the difference between 30-day and structural liquidity, because liquidity is heavily examined and frequently misunderstood.
4Work the IFRS 9 staging logic until significant increase in credit risk, 12-month versus lifetime ECL, and probability-weighted scenarios are automatic, since ECL connects accounting, capital and stress testing.
5Tie the ICAAP, ILAAP, stress testing and recovery and resolution planning together into one narrative about how a bank stays solvent, liquid and resolvable, which mirrors how SA10 expects you to reason.

Frequently Asked Questions

Who delivers the IFoA SA10 exam?

SA10 (Banking Specialist Advanced) is delivered by the Actuarial Society of South Africa (ASSA) as its B200 Banking Applications subject. IFoA candidates on the banking pathway complete their SP10 and SA10 studies and examinations directly with ASSA.

Is the SA10 exam multiple choice?

No. SA10 is an online-invigilated written examination in which all answers are typed. This practice bank uses multiple-choice questions purely as advanced-knowledge preparation to reinforce the underlying banking and risk concepts.

How much does the SA10 exam cost?

Exam fees for ASSA's B200 Banking Applications subject are set by ASSA and priced in South African Rand (ZAR). Exchange rates at the time of payment apply, so check the ASSA website for the current fee before registering.

What is the passing score for SA10?

Neither the IFoA nor ASSA publishes a fixed pass mark for SA10. As with other advanced actuarial subjects, the pass standard is set for each examination session based on the difficulty and performance of candidates.

Which topics does SA10 cover?

SA10 covers advanced banking applications: economic and regulatory capital, advanced credit, market, liquidity and operational risk modelling, IFRS 9 expected credit loss, Basel capital and large exposures, ICAAP and ILAAP, stress testing, recovery and resolution, ALM and funds transfer pricing, and banking M&A and strategy.

What should I complete before SA10?

SA10 builds on the Banking Specialist Principles subject (SP10, delivered by ASSA as B100) and the earlier core IFoA subjects. It assumes a working knowledge of Basel capital rules, IFRS 9 and bank balance-sheet management at the level expected of a senior bank manager.