How well do you know about Domestic Systemically Important Banks (D-SIBs) in Ind...
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Questions and Answers

Which banks are listed as Domestic Systemically Important Banks (D-SIBs) in the 2022 list released by the Reserve Bank of India?

  • State Bank of India, ICICI Bank, and HDFC Bank (correct)
  • Punjab National Bank, Canara Bank, and Bank of Baroda
  • IDBI Bank, Federal Bank, and IndusInd Bank
  • Axis Bank, Kotak Mahindra Bank, and Yes Bank
  • When did the additional CET1 requirement for D-SIBs become effective?

  • April 1, 2019 (correct)
  • April 1, 2017
  • April 1, 2018
  • April 1, 2016
  • What are the 4 indicators used to assess the selected D-SIBs?

  • Credit Risk, Market Risk, Operational Risk, and Liquidity Risk
  • Return on Equity, Return on Assets, Net Interest Margin, and Non-Performing Assets
  • Profitability, Efficiency, Asset Quality, and Capital Adequacy
  • Size, Interconnectedness, Lack of readily available substitutes or financial institution infrastructure, and Complexity (correct)
  • Study Notes

    • The Reserve Bank of India (RBI) released the 2022 list of Domestic Systemically Important Banks (D-SIBs) on January 2, 2023.
    • State Bank of India (SBI), ICICI Bank, and HDFC Bank kept their status as D-SIBs.
    • D-SIBs are interconnected entities whose failure can impact the whole financial system.
    • SBI is in the 3rd bucket with an Additional Common Equity Tier (CET)- 1 requirement of 0.60%.
    • ICICI Bank and HDFC Bank are in the 1st bucket with an Additional CET-1 requirement of 0.20%.
    • The additional CET1 requirement for D-SIBs was launched on April 1, 2016, and became effective from April 1, 2019.
    • SBI and ICICI Bank were designated as D-SIBs in 2015 and 2016, respectively, while HDFC Bank became a D-SIB in 2017.
    • The Framework for dealing with D-SIBs was introduced by the RBI in 2014.
    • D-SIBs are selected based on the size of the bank as a percentage of GDP.
    • The selected D-SIBs are assessed through the 4 indicators of Size, Interconnectedness, Lack of readily available substitutes or financial institution infrastructure, and Complexity.

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    Description

    Test your knowledge on the Domestic Systemically Important Banks (D-SIBs) in India with this informative quiz! Learn about the criteria used to select D-SIBs, the additional CET1 requirement, and the impact of D-SIBs on the financial system. Discover which banks are currently designated as D-SIBs and the indicators used to assess them. Challenge yourself with this quiz and become an expert on D-SIBs in India.

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