Global Regulators Name 29 Banks Critical to the Financial System
Global regulators on Friday named 29 banks so important to the world’s financial system that they require more capital and closer surveillance than rivals, plus a detailed plan to allow them to be wound down without taxpayer help if they hit trouble.
The list of banks drafted by the Financial Stability Board, a regulatory task force of the Group of 20, included 17 lenders from Europe and eight from the United States.
Leaders at the Group of 20 summit meeting endorsed a core capital requirement surcharge starting at 1 percent of risk-weighted assets and rising to 2.5 percent for the biggest banks, which would be phased in over three years starting in 2016. The board did not say which capital bracket each of the banks would fall into.
The banks will have to meet resolution planning requirements, called “living wills,” by the end of next year. National authorities can extend this requirement to other banks at their discretion, it said.
The list of institutions will be reviewed annually each November.
Following are the 29 global systemically important financial institutions identified by the board: Bank of America, Bank of China, Bank of New York Mellon, Banque Populaire, Barclays, BNP Paribas, Citigroup, Commerzbank, Crédit Agricole, Credit Suisse, Deutsche Bank, Dexia, Goldman Sachs, HSBC, ING Bank, JPMorgan Chase, Lloyds Banking Group, Mitsubishi UFJ, Mizuho, Morgan Stanley, Nordea, Royal Bank of Scotland, Santander, Société Générale, State Street, Sumitomo Mitsui, UBS, Unicredit Group and Wells Fargo.