Domestic Systemically Important Banks in India
Q. Which of the following banks were declared as Domestic Systemically Important Banks (D-SIBs) by the RBI on 31st Aug’15?- Published on 07 Feb 17a. SBI & ICICI Bank
b. ICICI Bank & PNB
c. HDFC Bank & SBI
d. PNB & HDFC
ANSWER: SBI & ICICI Bank
The D-SIB framework requires RBI to disclose the names of banks designated as D-SIBs every year in August starting from August 2015. Now it is to be interpreted as that these banks are so integral to the economy that their failure would have to be prevented at any cost.
The Reserve Bank of India (RBI) retained the classification of State Bank of India and ICICI Bank Ltd as Domestic Systemically Important Banks (D-SIBs) in 2016 and maintained their bucketing structure as it was last year in 2015.
D-SIBs are sub-classified into bucket number 1 to bucket number 5 depending on their size (as % of GDP). Higher the bucket number, more capital they’ve to maintain.
In 2016, SBI (Bucket 3) and ICICI (bucket 1) D-SIBs.
