What is the list of systemically important banks?
The official global list of systemically important banks (G-SIBs) has been produced each year since 2011 by the Financial Stability Board. There are also various national lists of systemically important banks, referred to by regulators as domestic systemically important banks (D-SIBs).
Where have you heard about the list of systemically important banks?
The global list came about following concern over the banking sector's vulnerability during the 2007-10 financial crisis. The official G-SIB list is updated every November, and attracts a lot of interest in the financial community.
What you need to know about the list of systemically important banks.
Because of their crucial importance, G-SIBs are subject to higher capital buffer requirements, total loss-absorbing capacity requirements, resolvability requirements and higher supervisory expectations. These include supervisory expectations for risk management functions, risk governance and internal controls.
Worldwide, 30 lenders are considered global systemically important banks. They're separated into five potential risk categories, the highest of which would have to hold an additional 3.5% of capital on top of minimum regulatory requirements.
Among the banks on the November 2016 G-SIB list are:
- Citigroup
- JPMorgan Chase
- Bank of America
- Deutsche Bank
- HSBC
- Barclays
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