Order the capital stack from purest
Exercise and reference answers
- Steps
- Common Equity Tier 1
- Additional Tier 1
- Total Tier 1 capital
- Tier 2 capital
- Total regulatory capital
- Conservation buffer on top
- Instructions
- Tap the layers from the purest capital upward.
Explanation
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_