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Which of the following banks categorized as domestic systemically important banks (D-SIBs) or banks that are considered as “too big to fail”?
1. State Bank of India
2. HDFC
3. Punjab National Bank
Select the correct answer using the code given below:    
  • a)
    1 only        
  • b)
    1 and 2 only        
  • c)
    2 and 3 only        
  • d)
    1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following banks categorized as domestic systemically impo...
The Reserve Bank of India (RBI) has retained State Bank of India, ICICI Bank and HDFC Bank as domestic systemically important banks (D-SIBs) or banks that are considered as “too big to fail”.
  • The Reserve Bank had issued the framework for dealing with domestic systemically important banks on July 22, 2014.
  • The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs starting from 2015 and place these banks in appropriate buckets depending upon their systemic importance scores (SISs).
  • Based on the bucket in which a D-SIB is placed, an additional common equity requirement must be applied.
  • According to analysts, too big to fail is a phrase used to describe a bank or company that’s so entwined in the economy that its failure would be catastrophic.
  • In case a foreign bank having branch presence in India is a global systemically important bank (G-SIB), it has to maintain additional CET1 capital surcharge in India as applicable to it as a G-SIB, proportionate to its risk weighted assets (RWAs) in India.
     
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Community Answer
Which of the following banks categorized as domestic systemically impo...
Sorry I can't explain because I m hindi medium student.
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Which of the following banks categorized as domestic systemically important banks (D-SIBs) or banks that are considered as “too big to fail”?1. State Bank of India2. HDFC3. Punjab National BankSelect the correct answer using the code given below: a)1 only b)1 and 2 only c)2 and 3 only d)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
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