SBI, ICICI Bank receive domestic systemically important banks' status

RBI had announced framework for dealing with D-SIBs in July 2014 that requires RBI to disclose names of recipient banks

State Bank of India (SBI) and ICICI Bank have been given the status of domestic systemically important banks (D-SIBs) by the Reserve Bank of India (RBI) on Monday.

RBI had announced the framework for dealing with D-SIBs in July 2014 and the framework requires RBI to disclose the names of banks designated as domestic systemically important every year in August starting from August 2015. 

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

The D-SIB framework specifies a two-step process of identification of D-SIBs. In the first step, the sample of banks to be assessed for systemic importance has to be decided. The selection of banks in the sample for computation of SIS is based on analysis of their size as a percentage of annual GDP.