SBI, ICICI Bank and HDFC Bank retained as D-SIBs

Current Context: The State Bank of India, ICICI Bank, and HDFC Bank were retained as Domestic Systemically Important Banks (D-SIBs) by the Reserve Bank of India.

• These three major banks are on the list of D-SIBs since 4th Sep 2017.
• The D-SIBs are those banks which if fail will impact negatively the economy of the country. Hence these banks are ‘too big to fail’.
• The D-SIBs banks are classified into 5 buckets namely Bucket 1, Bucket 2, Bucket 3, Bucket 4, and Bucket 5. Bucket 5 is termed to be most important and then followed in decreasing order.
• The ICICI Bank and HDFC Bank are in Bucket 1 and SBI is in Bucket 3.