Categories: Banking

SBI, ICICI Bank, HDFC Bank remain as (D-SIBs)

The RBI state-owned SBI, along with private-sector lenders ICICI Bank and HDFC Bank continue to be Domestic Systemically Important Banks (D-SIBs) or institutions which are ‘too big to fail’. SBI, ICICI Bank, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as in the 2018 list of D-SIBs.

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About SIBs:

SIBs are subjected to higher levels of supervision so as to prevent disruption in financial services in the event of any failure.
The Reserve Bank had issued the framework for dealing with D-SIBs in July 2014.
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 the expectation of government support for them in times of financial distress. These banks also enjoy certain advantages in funding markets.

Important takeaways for all competitive exams:

Reserve Bank of India (RBI) Headquarters: Mumbai, Maharashtra.
Reserve Bank of India Establishment: 1 April 1935.
Reserve Bank of IndiaGovernor: Shaktikanta Das.

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Sumit Arora

As a team lead and current affairs writer at Adda247, my role involves researching and creating informative and engaging content aimed at helping candidates prepare for national and state-level competitive government exams. I specialize in delivering insightful articles that keep aspirants updated on the latest current affairs trends and developments. My primary focus is on educational excellence, ensuring that our readers are well-prepared and informed to face their exams with confidence. Through meticulously crafted content, I aim to guide and support candidates in their journey toward success.