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The Financial Stability Board (FSB), made up of regulators from G20 countries, published its latest table of the world’s 30 most systemic banks on Tuesday.
Being included in the table means having to hold additional capital and undergo more intense supervision to avoid a repeat of taxpayer bailouts in the banking crisis over a decade ago.
In practice, the lenders typically hold capital buffers that are already above FSB requirements.
The 30 banks are divided between four “buckets” in order of how systemic, interconnected and complex they are, with JP Morgan now in a higher bucket than its nearest peers.
Last year JPMorgan shared the highest bucket with HSBC and Citigroup (NYSE:C), but is now alone in the next bucket up, which had been empty. JP Morgan had been the world’s most systemic bank in 2019.
BNP Paribas and Goldman Sachs have also moved up one bucket.
