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RBI Places HDFC Next to Other “Too Big to Fail” Banks
September 07, 2017
On 4th September, the Reserve Bank of India (RBI) announced that HDFC Bank is being considered a bank “too big to fail” and so added to the list of other “domestic systemically important banks” (D-SIBs). This makes it the third bank to join State Bank of India and ICICI Bank that are also identified as D-SIBs and share the same budgeting structure as theirs.
Banks under the D-SIB category are imposed additional capital requirements. Also, according to the government announcement, the additional Common Equity Tier 1 (CET1) requirement for D-SIBs will be fully effective from April 1, 2019.
