Citi and J.P. Morgan Topped The List of Important Banks

Citi joined JPMorgan as the world’s most systemically important banks, replacing HSBC in a group of 30 leaders who must hold extra capital from 2019 to 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.

Lenders on the list typically already meet or exceed the amount of capital they must hold due to pressure from regulators and markets to dispel any doubts about their resilience.HSBC joins BNP Paribas and Deutsche Bank in the next category down, with a surcharge of 2 percent. Bank of America rose a category to join them.The FSB, a G20 regulatory task force, also updated its list of 9 globally systemically important insurers, which was unchanged from last year.

The watchdog also updated its list of nine globally systemically important insurers, which was unchanged from last year.Insurers still on the list in 2017 will be required to comply with tougher “loss absorbency” requirements from January 2019.The list comprises Aegon, Allianz, AIG, Aviva, Axa, MetLife, Ping An, Prudential Financial, and Prudential.The FSB’s latest list makes no mention of reinsurers, a category still being considered for inclusion.

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