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Basel Committee tweaks its bucket list of global banks

22 November 2016 5:24PM
There are no additions and no removals to the list of thirty banks decreed to be global systemically important banks by the Financial Stability Board, working "in consultation" with the Basel Committee on Banking Supervision and national authorities. Some banks on last year's list, however, have been moved into or out of higher capital requirement 'buckets'.Four banks have had their respective capital surcharges lifted by 50 basis points: Citigroup, Bank of America, Industrial and Commercial Bank of China and Wells Fargo. Three banks have had their capital surcharge lowered by 50 basis points: HSBC, Barclays and Morgan Stanley. Alongside the surcharge requirements, G-SIBS must produce and maintain comprehensive plans on "group-wide resolution planning and regular resolvability assessments." The updated capital buffer requirements will apply to each G-SIB from January 2018. The main sample for the list of 30 includes the largest 75 banks as determined by the Basel III leverage ratio exposure measure (which takes in all four Australian majors), along with any banks that were designated as a G-SIB in the previous year but are not otherwise part of the top 75.

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