Monday, September 16, 2019

Higher Education

These 30 global banks posing systemic risk to the international banking system, 2016

Two of the biggest US banks, Citigroup and JPMorgann have been designated as potentially posing the greatest systemic risks to the international banking system in an annual ranking issued by the G20’s Financial Stability Board (FSB), an international alliance of central bankers.

Citigroup joins JP Morgan in the 2nd highest ranking, with a capital add-on of 2.5%, replacing HSBC, which drops down one level.

The FSB was set up by G20 after the financial crisis to identify banks that are “too big to fail,” which from 2019 will be required to hold extra capital in the form of bonds to ensure they do not threaten the wider financial system if there is a repeat of the 2008 crisis.

The list of the 30 globally systemically important banks:

Bucket 5

There are no banks in the highest bucket, which has a 3.5% capital add-on.

Bucket 4 (a capital add-on of 2.5%)

  • Citigroup
  • JP Morgan Chase

Bucket 3 (a capital add-on of 2.0%)

  • Bank of America
  • BNP Paribas
  • Deutsche Bank
  • HSBC

Bucket 2 (a capital add-on of 1.5%)

  • Barclays
  • Credit Suisse
  • Goldman Sachs
  • Industrial and Commercial  Bank of China Limited
  • Mitsubishi UFJ FG
  • Wells Fargo

Bucket 1 (a capital add-on of 1.0%)

  • Agricultural Bank of China
  • Bank of China
  • Bank of New York Mellon
  • China Construction Bank
  • Groupe BPCE
  • Groupe Crédit Agricole
  • ING Bank
  • Mizuho FG
  • Morgan Stanley
  • Nordea
  • Royal Bank of Scotland
  • Santander
  • Société Générale
  • Standard Chartered
  • State Street
  • Sumitomo Mitsui FG
  • UBS
  • Unicredit Group

Leave a Reply

Dr. Amarendra Bhushan Dhiraj
Dr. Amarendra Bhushan Dhiraj is the CEO and editorial director at CEOWORLD magazine, the leading global business magazine written strictly for CEOs, CFOs, top managers, company directors, investors, senior executives, business leaders, and high net worth individuals.
Share via
Copy link