RBI recently announced that State Bank of India, ICICI Bank, and HDFC Bank continue to be identified as systemically important banks in India. The additional common equity tier 1 requirement as a percentage of risk-weighted assets is 0.6% for the State Bank of India while this requirement is 0.2% for HDFC Bank and ICICI Bank; this capital requirement will be in addition to the capital conservation buffer.
The additional common equity tier 1 requirement for domestic systemically important banks was phased-in from April 01, 2016 and became fully effective from April 01, 2019. RBI had issued the framework for domestic systemically important banks on July 22, 2014. This framework requires RBI to disclose the names of banks designated as domestic systemically important banks and place these banks in appropriate buckets, depending on their Systemic Importance Scores. Based on the bucket in which such a bank is placed, an additional common equity requirement has to be applied to it. In case a foreign bank with a branch in India is a global systemically important bank or G-SIB, it has to maintain additional common equity tier 1 capital surcharge in India as applicable to it as a G-SIB, proportionate to its risk-weighted assets in India.
Keywords: Asia Pacific, India, Banking, D-SIBs, Basel, Regulatory Capital, Systemic Risk, RBI
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
Previous ArticleBundesbank Publishes Derivation Rules for Reporting by Banks
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.