A STUDY OF DOMESTIC - SYSTEMATICALLY IMPORTANT BANKS (D-SIB) IN INDIA

Abstract After the International crisis of 2008, in 2009 an international body called Financial Stability Board (FSB) affiliated with G- 20 was set up to monitor global financial system. The board observed that each country has certain big banks with huge client base and commanding billions of dollars. These banks were always rescued by market forces or the government to ensure the national economy doesn't collapse and ordinary citizen –clients don't suffer. These were identified as systematically important banks. In India RBI and government has recognized three Domestic systematically important banks at national level. These are SBI, ICICI and HDFC bank. This paper tries to find out what exactly the concept is and how it is decided about the systematically important banks? How these banks are different from other banks? What role do they play in the development of the economy?