Q. With reference to Systemically Important Banks (SIBs) consider the following statements:
1.There are no Indian banks present in the list of Global Systemically Important Banks (G-SIBs).
2.SIBs are perceived as banks that are Too Big To Fail (TBTF).
3.Banks, whose assets exceed 6% of GDP are considered part of Domestic Systemically Important Banks (D-SIBs)..
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A
Notes:

Explanation –

Statement 1 and 2 are correct. Currently, there are 30 banks in the list of G-SIBs. However, there are no Indian banks in the list. SIBs are perceived as banks that are Too Big To Fail (TBTF).

Statement 3 is incorrect. Banks, whose assets exceed 2% of GDP are considered part of Domestic Systemically Important Banks (D-SIBs) along other criteria.

Source: ForumIAS

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