Question

HDFC Bank is a systemically important Bank. As such, it has to maintain additional Common Equity Tier 1 of ________ as a percentage of its Risk-Weighted Assets (RWAs).

Q: Answer-HDFC Bank is a systemically important Bank. As such, it has to maintain additional Common Equity Tie...

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.