List of Systemically Important Banks Globally and Regionally

Systemically important banks play a crucial role in the global economy, and identifying them is essential for maintaining financial stability.

These banks are typically large, interconnected, and have a significant impact on the financial system if they fail. They are often referred to as "too big to fail" banks.

The Financial Stability Board (FSB) has identified 30 global systemically important banks (G-SIBs) that meet certain criteria, including size, interconnectedness, and substitutability.

These banks are subject to stricter regulations and requirements to mitigate the risks they pose to the financial system.

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Systemically Important Banks are a crucial part of the global financial system, as they have the potential to cause significant disruptions if they fail. These banks are closely monitored by regulatory bodies to ensure their stability and resilience.

The Global Systemically Important Banks (GSIB) list includes banks such as JP Morgan Chase, Bank of America, Citigroup, and HSBC, which have been designated as Tier 4 banks, requiring a countercyclical capital buffer of 2.5%. These banks are considered to be at a higher risk of causing systemic problems if they fail.

Some of the key characteristics of Systemically Important Banks include their size, international presence, and interconnectedness in the global financial network. For example, the Bank of Communications (BoCom) was recently included in the GSIB list, recognizing its expanding influence and systemic importance in the global banking sector.

Here are some of the Systemically Important Banks listed in the GSIB table:

These banks are not only influential but also have a significant impact on the global economy. By understanding their characteristics and roles, we can better appreciate the importance of maintaining their stability and resilience.

Domestic Important Banks play a crucial role in the financial system. They are identified as Systemically Important Banks (SIBs) due to their potential to pose a systemic risk if they fail.

These banks are interconnected and have a significant impact on the economy. This is why regulators keep a close eye on them to prevent any potential risks.

Lists of Domestic Systemically Important Banks (D-SIBs) are maintained by regulatory bodies to monitor their activities. This helps in identifying potential risks and taking preventive measures.

Some of the key characteristics of D-SIBs include:

These characteristics highlight the importance of D-SIBs in the financial system.

Systemically Important Financial Institutions (SIFIs) are a critical component of the global banking system. They are institutions that have the potential to disrupt the entire financial system if they fail.

A key aspect of SIFIs is that they are subject to stricter regulations and capital requirements. For example, in the list of Global Systemically Important Banks (GSIBs), institutions in Tier 1 are required to hold a higher percentage of capital, specifically 1.0%.

Some notable SIFIs include Bank of Communications, which has recently been recognized as a GSIB, and Bank of America, which has been a GSIB since 2018. These institutions have a significant impact on the global financial system and are subject to rigorous scrutiny.

The GSIB list includes institutions from various continents, with a breakdown of the institutions by tier and year. For instance, in 2023, the Tier 5 institutions include JP Morgan Chase, while in 2022, the Tier 4 institutions included JP Morgan Chase as well.

Here is a list of some of the key characteristics of SIFIs:

Systemically important banks are subject to various regulatory requirements to ensure their stability and resilience. The EU institutions approved a new Bank Recovery and Resolution Directive in 2013, which outlined the requirement of an extra crisis-management capital buffer, referred to as Minimum Requirement for own funds and Eligible Liabilities (MREL).

This directive aims to ensure that all firms have adequate total loss-absorbing capacity to be used in a possible resolution phase. MREL will be set depending on firm-specific risk assessments from January 2016 at the latest.

All EU banks and investment firms will be subject to the MREL requirement. The Financial Stability Board (FSB) is also working on a proposal for Gone-concern Loss-Absorbing Capacity (GLAC), which will apply to Globally Systemically Important Banks (G-SIBs).

GLAC will complement the MREL requirement by ensuring there are sufficient liabilities available to be bailed in at the point of resolution. MREL and GLAC are treated as separate requirements from the total capital ratio requirement.

These regulatory requirements are designed to promote financial stability and prevent the failure of systemically important banks.

In the list of systemically important banks, we can see a regional focus on the top banks in each tier. The top banks in tier 5 are headquartered in the Americas, with JP Morgan Chase being a consistent presence.

The banks in tier 3 are also primarily headquartered in the Americas, with Bank of America, Citigroup, and HSBC being notable mentions. This indicates a strong presence of American banks in the list of systemically important banks.

Here's a breakdown of the top banks in each tier by region:

This table highlights the regional focus of the top banks in each tier, with a clear dominance of American banks in the higher tiers.

Asia is a region that's home to some of the world's most influential banks, and it's no surprise why. Bank of China, ICBC, and Agricultural Bank of China are all based in China and have been recognized as Systemically Important Banks (SIBs) due to their significant size and international presence.

One of the key players in the region is Bank of China, which has been included in the GSIB list. This is a significant milestone in its growth trajectory, recognizing its expanding influence and systemic importance in the global banking sector.

Bank of China is not the only Chinese bank that's made the list, however. Agricultural Bank of China, ICBC, and China Construction Bank are also included, highlighting the region's dominance in the global banking landscape.

In addition to China, other countries in the region have also made the list. For example, HSBC (Hong Kong), Bank of China (Hong Kong), and Standard Chartered Hong Kong are all based in Hong Kong and have been recognized as SIBs.

Here's a list of some of the other countries in the region and their corresponding SIBs:

These countries and banks are all playing a significant role in shaping the region's financial landscape, and it's an exciting time to be a part of it.

Europe is home to a significant number of systemically important banks, with some of the largest and most influential institutions in the world.

The European Central Bank plays a crucial role in regulating and supervising these banks, ensuring their stability and soundness.

HSBC, with its North American holdings, is a significant player in the European banking landscape, and its subsidiary is subject to stricter capital ratio requirements.

The Dodd-Frank Act has had a significant impact on the US banking system, with stricter regulations and increased scrutiny for systemically important banks.

Here is a list of some of the systemically important banks in Europe, although this information is not explicitly stated in the article sections:

Note: This list is not exhaustive and is based on the information provided in the article sections, which does not explicitly mention European systemically important banks.

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The list of Global Systemically Important Banks (G-SIBs) is a crucial indicator of a bank's size and influence in the global financial system. The G-SIB list is updated annually, and it's interesting to see which banks are included and why.

One bank that made the list in 2023 is JP Morgan Chase, which has been on the list every year since 2018. Other banks that have consistently made the list include Bank of America, Citigroup, and HSBC.

Here's a breakdown of the G-SIB list by tier, showing the banks that made the list in 2023:

The inclusion of Bank of Communications (BoCom) in the G-SIB list is a significant milestone, recognizing its expanding influence and systemic importance in the global banking sector.

In the US, D-SIBs are financial institutions that are not big enough for G-SIB status, but still have a significant impact on the domestic financial system.

These institutions are subject to the most stringent annual Stress Test (USA-ST) by the Federal Reserve, which assesses their ability to withstand economic stress.

The Dodd-Frank Act imposes heightened supervision standards on banks with a balance sheet larger than $50 billion, making them subject to the USA Stress Test.

This stress test was initially applied to 18 banks from 2009-2013, but was expanded to 30 banks in 2014, as more provisions of the Dodd-Frank Act were phased in.

The list of D-SIBs in the US includes Ally Financial, American Express, and Truist Financial, among others.

Here is a list of some of the D-SIBs in the US, along with their region, headquarters country, and reporting currency:

The Bank of Communications' inclusion in the Global Systemically Important Banks (GSIB) list marks a significant milestone in its growth trajectory, recognizing its expanding influence and systemic importance in the global banking sector.

This achievement signifies a strategic milestone for BoCom, earning global recognition and enhancing its reputation as a stable institution.

As a GSIB, BoCom now faces increased responsibilities and regulatory scrutiny, which will undoubtedly shape its strategies and operations.

BoCom's journey as a GSIB reflects its role as a key player in maintaining the stability of the global financial system, positioning it as a resilient and crucial contributor to the evolving landscape of international banking.

By embracing its new status, BoCom will need to adhere to higher capital requirements and implement rigorous strategies to ensure its continued stability and growth.