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    Question

    What is the expected Common Equity Tier 1 (CET1) capital

    improvement range for banks under the revised Basel III norms?
    A 20тАУ70 basis points Correct Answer Incorrect Answer
    B 5тАУ25 basis points Correct Answer Incorrect Answer
    C 15тАУ40 basis points Correct Answer Incorrect Answer
    D 10тАУ50 basis points Correct Answer Incorrect Answer
    E 30тАУ60 basis points Correct Answer Incorrect Answer

    Solution

    According to IIFL Financials and other sources, the proposed cut in risk weightsтАФespecially for MSME and residential mortgage loansтАФis anticipated to lead to a 10тАУ50 basis points (bps) improvement in CET1 capital for banks. This change enhances the capital position of banks and encourages more credit to key sectors.

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