Consider the following statements about Domestic Systemically Important Banks D SIBs and identify th...........

Economic Affairs Types of Banks and Banking

Consider the following statements about Domestic Systemically Important Banks (D-SIBs) and identify the incorrect one

D-SIBs are large and important banks of any economy/country which are perceived as ‘Too Big to Fail’ due to expectation of government support in times of crisis.

D-SIBs are identified by the Basel committee on banking supervision on an annual basis.

These banks are required to maintain an additional capital as a backup for financial crisis.

SBI and ICICI have been declared as the D-SIBs of India

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Explanation:

Global SIBs are declared by Bassel Committee while Domestic SIBs are to be declared by a country’s central bank.
Also, apart from additional capital, these banks are subjected to additional scrutiny by the RBI (or central bank).