Global "too big to fail" bank list updated: BAC.US downgraded, Credit Agricole (EPA:ACA) upgraded

Market IntelWednesday, Nov 27, 2024 10:50 pm ET

1min read

The international body that monitors the global financial system and provides advice, the Financial Stability Board (FSB), has downgraded US Bancorp (BAC.US) to a lower tier of its "too big to fail" banks list and upgraded Credit Agricole (CRARF.US) to a higher tier.

The groupings are based on the additional capital buffers required for the 29 global systemically important banks (GSIBs). The FSB said: "These changes reflect the impact of changes in the underlying activities of the banks. The complexity category was the largest contributor to the score changes." It added that if the groupings increased, the higher loss absorption requirements specified on the list would come into effect on January 1, 2026.

After US Bancorp moved to the second group, only Citigroup (C.US) and HSBC (HSBC.US) remain in the third group. JPMorgan (JPM.US) continues to be the highest ranked GSIB in the fourth group, while the top fifth group remains vacant.

The FSB, headquartered in Basel, Switzerland, was established by the G20 in 2009 to promote global financial stability after the 2007-2008 financial crisis.

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