Question

    HDFC Bank is a systemically important Bank. As such, it

    has to maintain additional Common Equity Tier 1 of ________ as a percentage of its Risk-Weighted Assets (RWAs).
    A 0.20% Correct Answer Incorrect Answer
    B 0.40% Correct Answer Incorrect Answer
    C 0.60% Correct Answer Incorrect Answer
    D 0.80% Correct Answer Incorrect Answer
    E 1.00% 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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