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Module: General Practice

Q14: Regarding the liquidity requirements for D-SIBs, which of the following statements is correct?

A
D-SIBs must maintain a statutory Liquidity Coverage Ratio (LCR) of 150%.
B
The RBI performs more intensive monitoring of Net Stable Funding Ratio (NSFR) for D-SIBs, though the minimum statutory percentage remains the same as other banks.
C
D-SIB designation mandates a higher statutory minimum LCR of 120%.
D
D-SIBs are exempt from standard LCR requirements.
✅ Correct Answer: B
While the RBI monitors D-SIBs more closely due to their systemic risk, the D-SIB framework itself mandates additional capital (CET1), not a higher statutory minimum LCR or NSFR percentage.
Liquidity rules are generally uniform even for a Domestic Systemically Important Bank (D-SIB).
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