{"id":275820,"date":"2024-01-02T18:15:52","date_gmt":"2024-01-02T12:45:52","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=275820"},"modified":"2024-01-02T18:15:52","modified_gmt":"2024-01-02T12:45:52","slug":"domestic-systemically-important-banks-d-sibs-for-2023","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/domestic-systemically-important-banks-d-sibs-for-2023\/","title":{"rendered":"Domestic Systemically Important Banks (D-SIBs) for 2023"},"content":{"rendered":"

Sources:<\/strong> This post is based on the article <\/span>“RBI releases Domestic Systemically Important Banks (D-SIBs) of 2021\u201d<\/strong> published in <\/span>\u201cLive Mint\u201d<\/strong> on 2nd Jan 2024.<\/span><\/p>\n

Why in news?<\/h2>\n

Recently, the Reserve Bank of India (RBI) issued the list of Domestic Systemically Important Banks (D-SIBs).<\/p>\n

Which banks are on the list of Domestic Systemically Important Banks (D-SIBs)?<\/h2>\n
\"D
Source- RBI<\/figcaption><\/figure>\n

1) The RBI has retained the State Bank of India, HDFC Bank and ICICI Bank<\/strong> as Domestic Systemically Important Banks (D-SIBs).<\/p>\n

2) SBI has been shifted from bucket 3 to bucket 4<\/strong>, and HDFC Bank from bucket 1 to bucket 2<\/strong>. ICICI Bank continues to maintain its previous categorization of bucket 1.<\/p>\n

3) The higher D-SIB surcharge for SBI and HDFC Bank will be applicable from April 1, 2025. <\/strong>The additional Common Equity Tier 1 (CET1) requirement<\/strong> will be in addition to the capital conservation buffer.<\/p>\n

What are the Domestic Systemically Important Banks (D-SIBs)?<\/h2>\n

1) D-SIB are banks whose potential failure might seriously disrupt the financial system <\/strong>due to the bank\u2019s size, cross-jurisdictional activities, complexity, lack of substitutability and interconnectedness.<\/p>\n

2) Systemically Important Banks (SIBs) are hence considered ‘Too Big to Fail (TBTF)’.<\/strong><\/p>\n

3) The framework for handling Domestic Systemically Important Banks (D-SIBs)<\/strong>\u00a0was published by RBI in\u00a02014<\/strong> and was effective from 2015.<\/p>\n

4) RBI places these banks in appropriate buckets<\/strong> depending upon their Systemic Importance Scores (SISs). Based on the bucket in which a D-SIB is placed, an additional common equity requirement<\/strong> has to be applied to it.<\/p>\n

5) In case a foreign bank having a branch presence in India is a Global Systemically Important Bank (G-SIB),<\/strong> it has to maintain additional CET1 capital surcharge<\/strong> in India as applicable to it as a G-SIB, proportionate to its Risk Weighted Assets (RWAs)<\/strong> in India.<\/p>\n

UPSC Syllabus- Indian economy- Banking\u00a0\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Sources: This post is based on the article “RBI releases Domestic Systemically Important Banks (D-SIBs) of 2021\u201d published in \u201cLive Mint\u201d on 2nd Jan 2024. Why in news? Recently, the Reserve Bank of India (RBI) issued the list of Domestic Systemically Important Banks (D-SIBs). Which banks are on the list of Domestic Systemically Important Banks… Continue reading Domestic Systemically Important Banks (D-SIBs) for 2023<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127],"tags":[11872],"class_list":["post-275820","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":{"total":37,"cached_at":"","cached_date":1704218447},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/275820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=275820"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/275820\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=275820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=275820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=275820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}