Domestic Systemically Important Banks of 2021
The list of Domestic Systemically Important Banks (D-SIBs) for 2021 was released by the Reserve Bank of India (RBI). The RBI continues to classify SBI, ICICI Bank, and HDFC Bank as Domestic Systemically Important Banks (D-SIBs), in accordance with the 2020 list of D-SIBs.
List of Domestic Systemically Important Banks of 2021
The additional Common Equity Tier 1 (CET1) requirement for DSIBs began to be phased in on April 1, 2016, and it will be in addition to the capital conservation buffer as of April 1, 2019, according to a statement from RBI.
|Bucket||Banks||Additional Common Equity Tier 1 requirement as a percentage of Risk Weighted Assets (RWAs)|
|3||State Bank of India||0.60%|
|1||ICICI Bank, HDFC Bank||0.20%|
Framework for Domestic Systemically Important Banks
- The Reserve Bank released the Framework for Handling Domestic Systemically Important Banks (D-SIBs) on July 22, 2014.
- The D-SIB framework requires that, starting in 2015, the Reserve Bank disclose the names of banks that have been designated as D-SIBs and classify such institutions according to their Systemic Importance Scores (SISs).
- According to RBI, a D-SIB must meet an additional common equity requirement based on the bucket in which it is categorised.
- If a foreign bank with a presence in India has a branch and is a Global Systemically Important Bank (G-SIB), it must maintain additional CET1 capital surcharge in India as required of it as a G-SIB, proportionate to its Risk Weighted Assets (RWAs) in India, i.e., additional CET1 buffer prescribed by the home regulator (amount) multiplied by India RWA as per consolidated global Group books divided by total consolidated.
In 2015 and 2016, the Reserve Bank classified SBI and ICICI Bank as D-SIBs. SBI, ICICI Bank, and HDFC Bank were all classified as D-SIBs as of March 31, 2017, according to information received from banks. According to a statement made by the RBI in a press release, the most recent update is based on information gathered from banks as of March 31, 2021.