RBI identifies SBI, ICICI and HDFC Bank as Domestic Systemically Important Banks (D-SIBs)

RBI identifies SBI, ICICI and HDFC Bank as Domestic Systemically Important Banks (D-SIBs)

RBI identifies SBI, ICICI and HDFC Bank as Domestic Systemically Important Banks (D-SIBs)

  • The Reserve Bank of India has released the list of Domestic Systemically Important Banks (D-SIBs).

  • Domestic Systemically Important Banks are those banks which if fails would have a significant impact on the economy. RBI has a various set of criteria to add a bank to this list. The basic condition is that a bank size should be more than 2% of Indian GDP.

  • The D-SIBs banks are classified into 5 buckets. Bucket 1, Bucket 2, Bucket 3, Bucket 4 and Bucket 5. With Bucket 5 being the most important followed by rest in decreasing order.

  • State Bank of India is in Bucket 3, while HDFC and ICICI Bank both are in Bucket 1. Rest all buckets are empty. These three banks are in the D-SIBs list since Sep 04, 2017. No new bank has been added after the revised list is released on March 14, 2019.

Points to remember:

  1. Full form of D-SIBs?
  2. How many banks are under the category D-SIBs?
  3. How many buckets in D-SIBs?
  4. Which ban in which bucket?