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Question

  What is the Additional Common Equity Tier 1 requirement as a percentage of Risk-Weighted Assets (RWAs) for SBI (as it’s a systemically important Bank)

A 0.10% Correct Answer Incorrect Answer
B 0.20% Correct Answer Incorrect Answer
C 0.30% Correct Answer Incorrect Answer
D 0.50% Correct Answer Incorrect Answer
E 0.60% Correct Answer Incorrect Answer

Solution

     SBI, ICICI Bank, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as in the 2018 list of D-SIBs. The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs starting from 2015 and place these banks in appropriate buckets depending upon their Systemic Importance Scores (SISs). Based on the bucket in which a D-SIB is placed, an additional common equity requirement has to be applied to it.

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