The Reserve Bank of India (RBI) on Thursday announced the designation of State Bank of India and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) in 2016.

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

"The Reserve Bank of India has identified State Bank of India (SBI) and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) in 2016 and has retained their bucketing structure as it was last year", the RBI said in release.

The D-SIB Framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs every year in August starting 2015.

The Framework also requires D-SIBs to be placed in four buckets depending upon their Systemic Importance Scores (SISs). Based on the bucket in which a D-SIB is placed, additional common equity requirement has to be applied to it.

Based on the methodology provided in the D-SIB Framework and data collected from banks as on March 31, 2015, the Reserve Bank had announced State Bank of India and ICICI Bank Ltd. as D-SIBs on August 31, 2015, the press release said.

Based on the Domestic Systemically Important Banks (D-SIBs) Framework and data collected from banks as on March 31, 2016, these two banks have again been declared D-SIBs in 2016, added further.

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