The Reserve Bank of India (RBI) stated that The State Bank of India, ICICI Bank and HDFC Bank continue to be identified as 'Domestic Systemically Important Banks' (D-SIBs).
D-SIBs
SIBs are those financial institutions which are too big to fail. RBI had announced SBI and ICICI Bank as D-SIBs in 2015 and 2016.
"SBI, ICICI Bank and HDFC Bank continue to be identified as domestic systemically important banks (D-SIBs), under the same bucketing structure as in the 2021 list of D-SIBs," an RBI circular issued on Monday said.
On the basis of data collected from banks as on March 31, 2017, HDFC Bank was also classified as a D-SIB. The current update is based on data collected from banks as on March 31, 2022.
Framework
The framework for dealing with D-SIBs was issued in July 2014.
Starting in 2015, it requires RBI to publish the names of banks classified as D-SIBs and classify these lenders into the relevant categories based on their Systemic Importance Scores (SISs).
According to the circular from the central bank, state-owned SBI and private lenders like ICICI Bank and HDFC Bank remain D-SIBs.
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