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HomePersonal FinanceRBI expressed confidence on these banks, said- these banks will never sink

RBI expressed confidence on these banks, said- these banks will never sink

RBI has said that SBI, HDFC Bank and ICICI Bank remain important banks in terms of the financial system at the domestic level. At the level of the financial system in the country, these banks are so big that they cannot sink. Since August 2015, RBI is required to provide information about the names of banks important to the financial system in the same month every year.

What do the rules say?

As per the rules, such institutions can be placed in four categories on the basis of importance at the system level (SIS). The central bank said that while ICICI Bank remains in the same category-based structure as last year, SBI and HDFC Bank have moved to higher categories.

SBI moved from category (bucket) three to category four and HDFC Bank moved from category one to category two. This means banks will have to meet additional common equity share capital (Tier 1) as a percentage of risk weighted assets (RWA).

Central bank committed to curbing risk

RBI Governor Shaktikanta Das on Thursday said India is one of the fastest growing economies in the world and the central bank is committed to acting quickly and decisively to prevent any risks.

In the preface to the 28th issue of the RBI’s Financial Stability Report, Das said that strengthening the resilience of the financial sector, creating new growth opportunities and promoting inclusive and green growth are among the priorities of the central bank.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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