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    Question

    The Reserve Bank of IndiaтАЩs 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 IndiaтАЩs 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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