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.

Q: Answer-The Reserve Bank of India’s stress test results reveal that scheduled commercial banks (SCBs) are we...

The Reserve Bank of Indias 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.