![Domestic Systemically Important Banks (D-SIBs): By RBI Domestic Systemically Important Banks (D-SIBs): By RBI](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhO8VoGDOWhr9zK2n9iEf-dYeqP3xy8pDnxFapDR1kbyLlqKxNjkPnzcn6EiIIgFHh9hIxL28OsX1Nps1gMIo-sxIfvYRalaq19VaZQCEzL7B2fe4lh4mH1tB42p-iTnZIzy7vZ3TsLqbJOVMsdeK3_Onoe29i8f5C-w1QSoyxaaCk_CyKG5wHzhB6umQ/w320-h207-rw/RBI%20Domestic%20System.jpg)
- This means that these banks are considered too big to fail and require higher capital requirements to protect against financial instability.
- The Reserve Bank of India (RBI) first designated the State Bank of India (SBI) as a Domestic Systemically Important Bank (D-SIB) in 2015, and ICICI Bank was given this classification in 2016. Based on data from banks as of March 31, 2017, HDFC Bank was also classified as a D-SIB, along with SBI and ICICI Bank. The current update is based on data from banks as of March 31, 2022.
- As D-SIBs, these banks are considered to be interconnected entities whose failure could potentially have a ripple effect on the entire financial system, leading to instability. As a result, the Reserve Bank of India closely supervises and regulates these banks to ensure their stability.
- A Domestic Systemically Important Bank (D-SIB) is a financial institution that is considered to be so critical to the overall stability of the financial system that its failure could potentially lead to significant disruption. To mitigate this risk, D-SIBs are required to hold higher levels of capital, which act as a buffer to absorb potential losses and ensure the stability of the bank. This helps to prevent the failure of a D-SIB from causing widespread instability in the financial system.
Question:
Q.1 Which of these banks are classified as D-SIBs by the Reserve Bank of India?
a. HDFC
b. SBI
c. ICICI
d. All of the above
a. HDFC
b. SBI
c. ICICI
d. All of the above