The Reserve Bank of India (RBI) has announced that the State Bank of India (SBI), ICICI Bank, and HDFC Bank will continue to be designated as Domestic Systemically Important Banks (D-SIBs).
These banks are considered “too big to fail,” and their importance to the country’s financial system means that they require additional regulatory supervision.
This classification was made based on data from March 31, 2022, and follows similar designations for SBI and ICICI Bank in 2015 and 2016, and for HDFC Bank in 2017.
The RBI’s framework for dealing with D-SIBs was implemented in 2014 and requires the central bank to disclose the names of such banks and place them in appropriate buckets based on their Systemic Importance Scores.
