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Question

The Reserve Bank of India’s stress test results reveal that scheduled commercial banks (SCBs) are well-capitalised and capable of absorbing macroeconomic shocks even in the absence of any further capital infusion by stakeholders which shows that no SCB would breach the minimum capital requirement of ______ in the next one year.

A 7 percent Correct Answer Incorrect Answer
B 8 percent Correct Answer Incorrect Answer
C 9 percent Correct Answer Incorrect Answer
D 11 percent Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

The Reserve Bank of India’s stress test results reveal that scheduled commercial banks (SCBs) are well-capitalised and capable of absorbing macroeconomic shocks even in the absence of any further capital infusion by stakeholders. It shows no SCB would breach the minimum capital requirement of 9 per cent in the next one year.All banks would be able to meet the minimum regulatory common equity tier 1 (CET1) ratio of 5.5 per cent even under severe stress scenario. 

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