Module: | Capital Surcharges & Bucketing
Q13: In the "stacking order" of capital buffers under Basel III as implemented by the RBI, how is the D-SIB surcharge applied?
✅ Correct Answer: B
D-SIB surcharges are additive.
A bank must meet the minimum CET1 (5.5%), plus the CCB (2.5%), plus the specific D-SIB surcharge associated with its bucket.
This layering ensures the robustness of every Domestic Systemically Important Bank (D-SIB).
A bank must meet the minimum CET1 (5.5%), plus the CCB (2.5%), plus the specific D-SIB surcharge associated with its bucket.
This layering ensures the robustness of every Domestic Systemically Important Bank (D-SIB).