For Quick Alerts
For Daily Alerts

SBI and ICICI Bank are Systemically Important Banks: RBI


The Reserve Bank of India (RBI) on Monday announced the designation of State Bank of India and ICICI Bank as Domestic Systemically Important Banks (D-SIBs).

Systemically important banks are usually considered as banks that are ‘Too Big To Fail (TBTF)'.

SBI and ICICI Bank are Systemically Important Banks: RBI

"D-SIBs will be subjected to differentiated supervisory requirements and higher intensity of supervision based on the risks they pose to the financial system," the central bank said in a statement.

As per the framework for dealing with D-SIBs, RBI will determine a cut-off score beyond which banks will be considered as D-SIBs.

Banks will be plotted into four different buckets and will be required to have additional Common Equity Tier 1 (CET1) capital requirement ranging from 0.2 per cent to 0.8 per cent of risk weighted assets, depending upon the bucket they are plotted into.

Additional CET1 requirement as a percentage of Risk Weighted Assets (RWAs) for SBI is 0.6 per cent and that of ICICI Bank is 0.2 per cent, RBI said.

The framework requires RBI to disclose the names of banks designated as D-SIBs every year in August starting from August 2015.

Read more about: sbi icici bank
Story first published: Tuesday, September 1, 2015, 9:28 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more