29 November 2017
Reporter: Zsuzsa Szabo

RBC added to G-SIB list for 2017

The Financial Stability Board has published its 2017 list of globally systemically important banks (G-SIB), with Royal Bank of Canada joining the list and Groupe BPCE exiting.

The number of banks identified as G-SIBs remained the same (30 banks), although there were some changes in the lineup.

With regards to capital buffers, several banks were reclassified. Bank of China and China Construction Bank moved from bucket one to two. Meanwhile, three banks dropped to their immediate lower buckets. Citigroup went from bucket four to three, BNP Paribas moved from bucket three to two and Credit Suisse dropped from bucket two to bucket one.

According to the FSB, the changes reflect “changes in underlying activity and the use of supervisory judgement”.

G-SIBs are split into four buckets according to the higher capital buffers they would be required to hold by national authorities. The system has been in place since an update to Basel III’s framework in November 2012.

The most recent assignment also introduces a total loss-absorbing capacity (TLAC) standard, alongside regulatory capital requirements, which will be phased in from 1 January 2019 for G-SIBs identified in the 2015 list.

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