List of Domestic Systemically Important Banks

RBI releases 2017 list of Domestic Systemically Important Banks (D-SIBs)

Question: Which of the following banks is recently identified as a Domestic Systemically Important Banks (D-SIB) by the Reserve Bank?
(a) Kotak Mahindra
(b) HDFC
(c) Central Bank of India
(d) Punjab National Bank
Answer: (b)
Related Facts:

  • On September 5, 2017, HDFC Bank is included in the list of Domestic Systematic Important Banks (D-SIBs) by the Reserve Bank of India.
  • It is important that HDFC Bank is the second largest private sector bank.
  • This is the third bank to be included in D-SIB list after State Bank of India (SBI) and ICICI Bank.
  • The Reserve Bank had issued the Framework for dealing with Domestic Systemically Important Banks (D-SIBs) on July 22, 2014.
  • The D-SIB Framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs every year in August starting from 2015.
  • In the D-SIB list, those financial institutions are included in whose failure the country’s economy has to suffer huge losses.

Reference:
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=41556
https://www.rbi.org.in/hindi/Scripts/PressReleases.aspx?Id=33235&Mode=0