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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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