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100+ Free IFoA SA10 Practice Questions

IFoA SA10 Banking Specialist Advanced practice questions are available now; exam metadata is being verified.

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A bank's net interest margin (NIM) is best defined as which ratio?

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2026 Statistics

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 Practice Questions

Verified exam format metadata for IFoA SA10 Banking Specialist Advanced is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.