RBI releases the list of Domestic Systemically Important Banks (D-SIBs) 2021
The Reserve Bank of India has retained SBI,ICICI bank and HDFC bank in the list of Domestically Systemically Important Banks(D-SIB) list for the year 2021.
- RBI started disclosing the name of the bank in the D-SIB list from 2015 and SBI was included in the list.
- ICICI Bank was included in 2016 and HDFC bank was included in 2017.
D-SIB (Domestic Systemically Important Banks )
- The concept behind D-SIB is that there are certain banks in India which cannot be allowed to fail as its failure may badly affect the Indian economy .
- RBI selects banks on their size and their overall contribution in the Indian economy.
- These banks have to keep an additional Common Equity Tier 1 (CET1) apart from their capital conservation buffer .
- SBI has to maintain an additional Common Equity Tier 1 (CET1) of 0.80% as a percentage of their Risk Weighted Assets .
- HDFC Bank and ICICI banks have to maintain an additional Common Equity Tier 1 (CET1) of 0.20% as a percentage of their Risk Weighted Assets .
Foreign Banks having branches in India are called as Global-Systemically Important Bank(G-SIB).At present no foreign bank has been put in the G-SIB category by RBI.
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