November 29, 2021

JP Morgan redesignates FSB as the most important bank in the financial system

JP Morgan

The Financial Stability Board (FSB), created by financial authorities in major countries, listed on the 23rd, “Globally system-critical banks” that could threaten global financial stability in the event of a bankruptcy. JPMorgan Chase has once again become the world’s most systemically important bank. BNP Paribas and Goldman Sachs have also been raised by one level.

Following the bailout of banks with public funds during the global financial crisis about 10 years ago, regulators select systemically important banks worldwide each year. Elected banks are obliged to accumulate additional capital and curb risk assets according to the importance classification.

With this change, JP Morgan will be the only bank to be required to add 2.5% of its assets on a risk-weighted basis. BNP Paribas and Goldman will also have more capital added, but these banks already have a capital buffer that exceeds the requirements of the FSB.

Robert Warner is a journalism graduate with keen interest in covering business news – specifically startups. He has as a keen eye for technologies and has predicted quite a few successful startups over the last couple of years. His goal with this website is to report accurately on all kinds of stock news, and have a great deal of passion for technical and active reporting. Robert is diligent and proactive when it comes to news reporting.