Pedestrians walk past a Citibank branch located adjacent to Citigroup Inc. headquarters in New York. Citigroup Inc. (Image Credit: Bloomberg)

Citi and JPMorgan top list of globally systemic banks

The bank will have to hold extra capital from 2019 to help preserve financial stability

LONDON: Citi has joined JPMorgan at the top of global regulators’ list of systemically important banks, replacing HSBC and meaning the U. S.bank will have to hold extra capital from 2019 to help preserve financial stability.

The group of 20 economies (G20) agreed after the 2007-09 financial crisis that top banks, whose size and complexity mean a collapse could wreak havoc in markets, should hold extra capital, according to the level of risk they present.

Members of the list of 30 lenders will also have to begin holding bonds from 2019 that can be written down to help replenish capital that is burnt through in a crisis.

In the annual update of rankings published on Monday by the G20’s Financial Stability Board (FSB), Citi has replaced HSBC in the top “bucket” facing a 2.5 per cent capital surcharge on...Read more...

Source: gulfnews.com