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RBI has ranked SBI, ICICI Bank and HDFC Bank among D-SIBs. In simple language, the country’s economy will be shaken by the sinking of the banks included in D-SIB and even the government cannot tolerate their sinking.
New Delhi. Reserve Bank of India (RBI) has again included the country’s top 3 banks State Bank of India (SBI), HDFC Bank and ICICI Bank in the D-SIB list i.e. Domestic Systematic Important Banks, i.e. such banks whose stability is very important for the country’s economy.
India’s 3 safest banks included in D-SIB list
SBI, HDFC Bank and ICICI Bank were included. These banks are so important for the country’s economy that they are called Too Big to Fail. The country’s economy will be shaken by the sinking of the banks included in D-SIB and even the government cannot tolerate their sinking. Therefore, the government and RBI take all possible steps to ensure their stability. Banks included in the D-SIB list are required to maintain as much common equity Tier 1 as per their bucket. This is the capital through which risk can be easily managed. Banks included in the list of D-SIBs have to keep it higher.
The concept of D-SIBs came for the first time in the year 2014.
The Reserve Bank of India created the D-SIB framework in 2014 and since 2015, every year it tells which banks are included in it. Under this, banks which have more impact on the system have to keep more capital so that they remain stable even during times of crisis. If a foreign bank operates in India and is in the list of Global Systemically Important Banks (G-SIB), then it is also required to maintain additional capital in India, which is decided according to its global capital requirements.
