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The RBI identified SBI, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks
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Additional CET1 requirements apply to these banks on top of the Capital Conservation Buffer
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CET1 requirements are 0.80% for SBI, 0.40% for HDFC Bank, and 0.10% for ICICI Bank
The Reserve Bank of India or the RBI continued to identify names like the State Bank of India, HDFC Bank, and ICICI Bank, as Domestic Systemically Important Banks or D-SIBs, according to a press release on Tuesday.
The additional Common Equity Tier 1 or the CET1 requirement for these D-SIBs will be in addition to the Capital Conservation Buffer.
The release said that Additional CET1 requirement as a percentage of Risk Weighted Assets or RWAs stood at 0.10% for ICICI Bank, 0.40% for HDFC Bank, and 0.80% for State Bank of India.
The Reserve Bank had issued the ‘Framework for dealing with Domestic Systemically Important Banks or D-SIBs’ on Jul. 22, 2014. The D-SIB framework requires the RBI 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 (SIS).
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