Domestic Systemically Important Banks (D-SIBs)
Following the global financial crisis of 2008, it was observed that problems faced by certain large and highly interconnected financial institutions hampered the orderly functioning of the financial system, which in turn, negatively impacted the real economy.
It was decided to identify such institutions and prescribe them higher capital requirements.
The RBI has adopted a system by which banks are plotted into four buckets based on a lender’s systemic importance scores in ascending order.
The banking regulator prescribes higher capital requirements — in terms of additional Common Equity Tier 1 (CET 1) capital — for such entities.
RBI had started listing D-SIBs from August 2015.
SBI and ICICI Bank were identified as D-SIB both in 2015 and 2016.
Following the global financial crisis of 2008, it was observed that problems faced by certain large and highly interconnected financial institutions hampered the orderly functioning of the financial system, which in turn, negatively impacted the real economy.
It was decided to identify such institutions and prescribe them higher capital requirements.
The RBI has adopted a system by which banks are plotted into four buckets based on a lender’s systemic importance scores in ascending order.
The banking regulator prescribes higher capital requirements — in terms of additional Common Equity Tier 1 (CET 1) capital — for such entities.
RBI had started listing D-SIBs from August 2015.
SBI and ICICI Bank were identified as D-SIB both in 2015 and 2016.
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