Reserve Bank of India has retained State Bank of India, ICICI Bank and HDFC Bank as Domestic Systemically Important Banks (D-SIBs). These three banks have continued to be on the D-SIBs list published by RBI, since Sep 04, 2017. Domestic Systemically Important Banks are those banks which if fail would have a significant impact on the economy.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
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 ICICI Bank and HDFC Bank are in Bucket 1. The updated list is based on the data collected from banks as of March 31, 2021.
About the D-SIB:
The D-SIB framework requires the central to disclose the names of banks designated as D-SIBs starting from 2015 and place these lenders in appropriate buckets depending upon their Systemic Importance Scores (SISs). SIBs are seen as ‘too big to fail (TBTF)’, creating expectations of government support for them in times of financial distress. These banks also enjoy certain advantages in funding markets.
National Safe Motherhood Day is observed across the India on the 11th of April every…
India is becoming a favorite place for adventure lovers. Many tourists visit to enjoy exciting…
For the major breakthrough in the technological advancements the Ahmedabad based AAKA Space Studio has…
The former Delhi High Court judge Yashwant Varma has resigned from his post after the…
India is a land of rivers, with hundreds of rivers flowing across the country. These…
NASA successfully completed the Artemis II mission with the safe splashdown of the Orion spacecraft…