BANKING AFFAIRS

Detailed explanation-1: -The additional Common Equity Tier 1 (CET1) requirement for DSIBs was phased in from April 1, 2016 and became fully effective from April 1, 2019 and the additional CET1 requirement will be in addition to the capital conservation buffer, said RBI in a statement.

Detailed explanation-2: -The RBI announced SBI and ICICI Bank as D-SIBs in 2015 and 2016 while HDFC Bank was added to the list as on March 31, 2017. The Reserve Bank of India on Monday said that the State Bank of India, ICICI Bank, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs).

Detailed explanation-3: -A D-SIB is a bank that is considered to be so important to the financial system that its failure could cause significant disruption. As a result, these banks are required to maintain higher capital buffers to protect against potential losses and ensure their stability.

Detailed explanation-4: -The Reserve Bank had announced SBI and ICICI Bank as D-SIBs in 2015 and 2016. Based on data collected from banks as on March 31, 2017, HDFC Bank was also classified as a D-SIB, along with SBI and ICICI Bank. The current update is based on the data collected from banks as on March 31, 2022.

Detailed explanation-5: -Essentially, systemically important banks are the ones perceived as too big to fail. Such a perception creates an expectation of govt support for these banks at times of distress. Topics: RBI | sbi | ICICI Bank. Subrata Panda | Mumbai | Last Updated at January 05 2022 00:21 IST.