Which of the following is correct regarding Domestic Systemically Important Banks D SIBs n...........

Economic Affairs Types of Banks and Banking

Which of the following is correct regarding Domestic Systemically Important Banks (D-SIBs)?

The Basel committee of Banking Supervision identifies D-SIBs on an annual basis.

D-SIBs are the banks that have assets more than 3% of GDP and hence their failure could have a disruptive effect on economy

These banks are required to keep an Additional Common Equity as a percentage of Risk Weighted Assets.

Presently only SBI and ICICI are classified as D-SIBs in India.

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Explanation:

- Option 1: The Basel Committee provides guidelines for identifying D-SIBs, but it is the responsibility of individual countries to identify their D-SIBs.

- Option 2: D-SIBs do have a significant impact on the economy if they fail, but identification is not solely based on having assets more than 3% of GDP.

- Option 3: D-SIBs are required to maintain additional Common Equity Tier 1 as a percentage of their Risk-Weighted Assets to absorb potential losses.

- Option 4: As of now, SBI, ICICI, and HDFC Bank are classified as D-SIBs in India.