📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    SBI is a systemically important Bank. As such, SBI 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.

    Practice Next
    More Risk Management in Banks Questions
    ask-question