APSC Prelims 2025: Ten One-Liners on D-SIBs

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1. D-SIBs are banks deemed “Too Big to Fail” due to their size, complexity, and interconnections.
2. These banks are classified based on their potential economic impact if they collapse.
3. D-SIBs must adhere to stricter regulations, including capital buffers and stress tests.
4. They are categorized into risk-based buckets, with Bucket 4 having the highest risk.
5. RBI has placed SBI in Bucket 4, HDFC Bank in Bucket 3, and ICICI Bank in Bucket 1.
6. Additional capital requirements vary by bucket, with SBI needing 0.80% extra CET1.
7. RBI follows a two-step process to identify D-SIBs based on systemic importance.
8. Only banks with assets over 2% of GDP are assessed for D-SIB classification.
9. A composite score based on interconnectedness and substitutability determines D-SIB status.
10. G-SIBs, unlike D-SIBs, are global banks whose failure would impact the international economy.