Exam Feedback May 2017 Part 2 Exam Feedback

[ABC_2017]

Omg, this is one of the most confused post exam discussions i am reading,even after referring the books we (I) are(am)not clear which answer is right or which is wrong.

I strongly feel the exam has tricked us into feeling easy and it is far far from that. Lots of extremely tricky questions. It will be challenging to guess how i did it. Now when people ask how i did the exam,instead of saying good or bad, i am just saying i don't know

and therefore i dnt think this exam was easy as people have commented. It was deceptively easy though.

 

[FrmL2_Aspirant]

I chose the same answer. I remembered it said that there is no correlation between deposit rate and deposit amount. So even if they raise the deposit rate, the demand deposit may not increase but deposit interest to be paid will increase. So it couldn't be certain that liquidity coverage ratio will increase.

I choose LCR decreases because customers will move their deposits to other banks, not sure if thats right

 

[FM22]

I choose NSFR decreases because customers will move their deposits to other banks, not sure if thats right

no correlation means no impact is there on deposits in case if rates move? so people will not move their deposits. they will remain sticky with the Bank

 

[chopin]

I choose NSFR decreases because customers will move their deposits to other banks, not sure if thats right

I understand that deposit rate is the interest rate paid by financial institutions to deposit account holders, if the deposite rate increase, the bank should pay more interest to their clients. Therefore the numerator of RAROC decrease and also the RAROC. Do you agree?

 

[bpdulog]

This was a mean reversion question to find long-term rate. I got 1.82 (0.6781/0.3722)

There was a mean reversion question, but I think they are asking about autocorrelation question

 

[bpdulog]

I understand that deposit rate is the interest rate paid by financial institutions to deposit account holders, if the deposite rate increase, the bank should pay more interest to their clients. Therefore the numerator of RAROC decrease and also the RAROC. Do you agree?

I think they were asking about NSFR liquidity impact, not sure what RAROC has to do with it?

 

[cj9101]

This is my gut feel...i dont think it can go beyond like 40 or 44 max..someone on this forum quoted 50 to 55 thats around 63% to 70% score..which is impossible for a minimum percentile score unless grap wants to have a passing rate of around 25% only...GARP has been maintaining a pass rate of around 55% and we are only handful of people discussing things on forum..there are many and i believe 99% of the people who are not commenting on this forum. On this forum only i can say majority of us assuming having a decent paper wud be expecting 50-55 then not in any case the cutoff can be around 50 to 55...my belief is 40 expected with upward bias of 44

last year Nov 16 was 50 whuch was harder than this one

 

[ashish_pandey]

last year Nov 16 was 50 whuch was harder than this one

From where did you got the number?..GARP never publishes it if i am right...last year number of people qualifying % in nov was 54% and 50% in may... not the score 50..this info was published

 

[cj9101]

From where did you got the number?..GARP never publishes it if i am right...last year number of people qualifying % in nov was 54% and 50% in may... not the score 50..this info was published

68 which is avg of top5 percent of 2800 passed people * 0.75

 

[ashish_pandey]

68 which is avg of top5 percent of 2800 passed people * 0.75

Where do you get these numbers from?..like 68 as top 5th percentile,2800 and garp using 75% of that as cuttoff?..look i am not doubting but 50 seems to be pretty high for 55% of the people to clear..wud be great if u can share the source

 

[FM22]

I think they were asking about NSFR liquidity impact, not sure what RAROC has to do with it?

I think there will be no impact on NSFR, because deposits will remain intact.

 

[cj9101]

Where do you get these numbers from?..like 68 as top 5th percentile,2800 and garp using 75% of that as cuttoff?..look i am not doubting but 50 seems to be pretty high for 55% of the people to clear..wud be great if u can share the source

68 is average of top 5% passed people. every exam has about 2500 to 2800 passed people. So last year cutoff is 68 *0.75 which is over 50.
From other forums I got.

 

[bpdulog]

last year Nov 16 was 50 whuch was harder than this one

How do you know what the cutoff is? The only thing that is published is pass % rates

 

[bpdulog]

I think there will be no impact on NSFR, because deposits will remain intact.

I thought the question said there was a shift from deposits to wholesale funding, but I could be wrong

 

[ashish_pandey]

68 is average of top 5% passed people. every exam has about 2500 to 2800 passed people. So last year cutoff is 68 *0.75 which is over 50.
From other forums I got.

Sorry man..but looks difficult to digest..since garp never publishes the algorithm for cutoff and count of people clearing..also the results that get published only reflect the quartiles and not the scores..+ i may be wrong but bionic is the only forum where i have seen maximum viewpoints of exam takers..

 

[FrmL2_Aspirant]

I thought the question said there was a shift from deposits to wholesale funding, but I could be wrong

@FM22, that was an LCR question, not NSFR

 

[cj9101]

Sorry man..but looks difficult to digest..since garp never publishes the algorithm for cutoff and count of people clearing..also the results that get published only reflect the quartiles and not the scores..+ i may be wrong but bionic is the only forum where i have seen maximum viewpoints of exam takers..

Then have you seen a person who got passed with 40 to 45 out of 80?

 

[MG250]

I found the Part II exam to be much easier than the Part I exam, even though I thought the material in Part II to be more difficult. The calculation questions, with the exception of a few, were very simple. If you knew that the hazard rate = spread/(1-RR) you got 3-4 questions right there! There were a lot more conceptual questions than I was prepared for, but I thought they were fair and many could be figured out based on intuition alone. Also, the questions were not too long... I finished the entire exam in 2hrs 15mins before checking it over and leaving early.

 

[ngocmnb314]

cj9101, no OFFICIAL score has ever been published by Garp so "anyone" or any "other forum" couldnot be any more credible than BT. It's been all speculation.

 

[ashish_pandey]

Then have you seen a person who got passed with 40 to 45 out of 80?

No sir..bcz the person himself didn't knew his score..thats the point i am trying to make...