The G20 Financial Stability Board’s most recent rankings, which were released on Monday, show that JP Morgan continues to be the most systemically significant bank in the world.
After the global financial crisis more than ten years ago, the FSB started the yearly rankings and mandated that the largest lenders in the world retain an additional buffer of capital calibrated across five “buckets” and face more rigorous operational inspection.
JP Morgan is still in bucket 2; no one is in the position with the highest capital needs.
“The list’s 30 banks are the same as those from 2021. One bank on the list has moved up one bucket, from bucket 2 to bucket 3, and that bank is Bank of America “FSB released a statement.
In bucket 3, Bank of America is included with Citigroup and HSBC.
BNP Paribas and China Construction Bank are now in a lower category.
Beginning on January 1, 2024, the new capital requirements will be in effect.
According to the FSB, cross-border exposures within the banking union of the European Union have been taken into account in the calibration of rankings for European banks this year.
