Which one of the following banks has not been identified as Domestic Systematically Important Banks (D-SIBs) by RBI?
2019-07-20 | Team PendulumEdu
A. ICICI Bank
B. Kotak Mahindra Bank
C. HDFC Bank
D. State Bank of India
Reserve Bank of India (RBI) has released the 2018 list of Domestic Systematically Important Banks (D-SIBs) in which SBI has been placed in bucket three while ICICI Bank and HDFC Bank in bucket 1.
D-SIBs are those banks that are systematically so important that their failure could cause interference in the essential services provided by the banks, thereby, disrupting the economic activities. RBI categorizes these banks as important due to their large size, cross-jurisdictional activities, complexity, lack of substitutability, and interconnectedness.
Kotak Mahindra Bank, ICICI Bank, SBI and HDFC Bank are also the Big four Banks of India. Big Four Banks refer to those banks which have one or more of the following characteristics:
- Large in terms of market capitalization and total assets
- Having a wider presence in the global market
- Large customer base in the domestic as well as international market
- Too big to fail- can cause turmoil in the economy of a nation
- Banks having a score more than the cutoff level set by Basel Committee on Banking Supervision
Hence, b is the correct answer.
Questions related to Banking/Financial Awareness are asked in various competitive exams like UPSC CSE, UPSC CDS, SSC CGL, IBPS PO Mains, IBPS SO, SBI PO Mains, etc. Try and attempt free mock tests at PendulumEdu and upgrade your knowledge related to the banking sector.
SSC Online Coaching | SSC CGL Online Classes | SSC CHSL Online Coaching | SSC CPO Coaching Classes | SSC MTS Classes OnlineRead More
SSC CGL Tier 2 Result and SSC CGL Tier 1 and Tier 2 Cut off of SSC CGL 2019 Declared | Check HereRead More